NMPF Supports Labeling Integrity Through DAIRY PRIDE Act

The National Milk Producers Federation commended lawmakers for reintroducing the DAIRY PRIDE Act. The legislation, NMPF says, would bring clear, accurate labeling information for consumers and end harmful mislabeling of dairy foods for plant-based products. The legislation requires the U.S. Food and Drug Administration to enforce its own existing standards of identity on imitation dairy products after decades of inaction. Senators Tammy Baldwin, a Wisconsin Democrat, and James Risch, an Idaho Republican, introduced a Senate version of the bill, and a companion bill was introduced in the House. NMPF President and CEO Jim Mulhern states, “FDA is responsible for the integrity and safety of our nation’s food, medicine, and medical devices, and it’s crucial that it enforce its own standards and requirements.” Standards of identity legally define what constitutes a specific food or food product, requiring the food product to carry certain qualities. When enforced, these legal standards protect consumers by helping to ensure the integrity of their food.

Friday Morning Dairy Market Update - Grains Weaken on Profit-Taking Overnight

OPENING CALLS:

Class III Milk Futures:	5 to 8 Lower
Class IV Milk Futures:	Steady to 5 Lower
Butter Futures:	Steady to 1 Lower

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	8 to 10 Lower
Soybean Futures:	4 to 6 Lower
Soybean Meal Futures:	$2 to $3 Lower
Wheat Futures:	3 to 6 Lower

MILK:

Class III milk futures took a beating Thursday with pressure from lower spot prices. The other factor was continued strong milk production during the month of March, according to the Milk Production report. Friday the market will contend with the potential for further weakness of cash prices as well as the negative implications of the Cold Storage report. There is plenty of milk available for both bottling and manufacturing demand. Plants report increasing milk receipts. Most plants are already running at capacity, increasing the anxiety over handling the milk during spring flush. Milk futures are expected to see further pressure Friday.

CHEESE:

Increasing cheese supplies in the face of strong demand does not make one feel warm and fuzzy about prices. The continued increase of American cheese stocks by 14.6 million pounds in March with inventory up 7% over last year, is a bit bearish. Swiss cheese stocks gained 1.0 million pounds being 2 percent below last year. Other cheese was up 14.4 million pounds and 6 percent over last year. This put total cheese up 30.0 million pounds and 7 percent above last year. Spot prices may weaken further Friday.

BUTTER:

Strong demand from the food service industry was very evident on the March Cold Storage report. Inventory only increased 29,000 pounds. This is the positive aspect of the market. The negative aspect is that inventory remains 15% percent higher than a year earlier. The market is expected to remain in a sideway range for a period of time.

Thursday Closing Dairy Market Update - Class III Milk Futures, Cheese and Butter Futures End Lower

MILK

For the first four days of the week, Class III milk has traded in a tight range, with the Thursday close of $17.65 so far the lowest close this week. The April 21 USDA NASS Milk Production report showed that, for the 10th month in a row, U.S. milk production grew, with the March report showing production up 2%.

CHEESE

Cheddar block closed down 2 cents on the day at $1.7750 with five trades and two offers. Cheddar barrel closed down 1 cent at $1.7950 with 10 trades and two offers. The USDA NASS Cold Storage report Thursday showed total natural cheese stocks in refrigerated warehouses on March 31, 2021, were up 2% from the previous month and up 7% from March 31, 2020.

BUTTER

Butter closed down 5.25 cents at $1.74 with eight trades, three bids and three offers. The USDA NASS Cold Storage report showed butter stocks were up slightly in March versus the prior month and up 15% from a year ago. The March report was a surprise to the market in that butter inventories remain heavy by historical standards, with stocks at the end of March the highest since 1993 for that time of year.

OUTSIDE MARKETS SUMMARY

July corn closed up its daily limit of 25 cents, and December corn was up 16 3/4 cents. July soybeans reached new contract highs, closing up 34 3/4 cents, and November soybeans were up 28 cents. July KC wheat closed up 37 cents, July Chicago wheat was up 35 1/2 cents and July Minneapolis wheat was up 29 1/2 cents. The June U.S. Dollar Index was trading up 0.25 at 91.38. The Dow Jones Industrial Average was down 301.78 points at 33,835.53. June gold was down $13 at $1,780.10, May silver was down $0.47 at $26.10 and May copper was down $0.0145. June crude oil was up $0.09 at $61.44, June heating oil was up $0.0075, June RBOB gasoline was down $0.0074 and June natural gas was up $0.057.