MILK
Class III milk futures climbed higher after spot cheese showed strong gains. Both blocks and barrels had improvements Thursday, pushing futures higher. April's limit-higher move will open up Friday's trading with expanded limits. The January Livestock Slaughter Report showed federally inspected dairy cattle slaughter 7.1% lower than a year prior at 277,300 head. January's slaughter total was the lowest for the month since 2017. The first quarter typically holds the highest dairy cattle slaughter value of the year. Lower culling, coupled with the consistent improvements in production per cow, could lead to a problematic spring flush.
AVERAGE CLASS III PRICES
| 3 Month: | $16.54 |
| 6 Month: | $17.21 |
| 9 Month: | $17.46 |
| 12 Month: | $17.45 |
CHEESE
Both block and barrels had strong gains in spot trading, the first time since Jan. 7 that both had increased in the same trading session. Growing access to COVID-19 vaccines and falling infection rates have moved many states and local municipalities to open necessary places like schools but also socially based places and events, such as sporting competitions, concerts and festivals. Foodservice purchasers may begin to feel more confident in stocking up on needed food supplies for upcoming events as the possibility of cancelations retracts.
BUTTER
Butter price firmed a bit Thursday, but the trend of gains followed by losses still seems to be in play in the butter market. Cream availability will continue to keep butter manufacturers busy into spring flush.
OUTSIDE MARKETS SUMMARY
March corn fell 4.50 cents, closing at $5.5475. March soybeans dropped 17.75 cents, closing at $14.06, and losing all of Wednesday's gains. March soybean meal declined $4.20 per ton, closing at $425.10. March wheat decreased 8.40 cents, ending at $6.7175. February live cattle gained $0.43, settling at $117. April crude oil moved up $0.31, closing at $63.53 per barrel. The Dow declined 560 points, ending at 31,402, while the NASDAQ dropped 479 points, closing at 13,119.
