Milk:
Class III futures were unable to capitalize on the improvements to cheese price in the spot market. USDA has made several announcements related to different food supplementation programs, but not anything relating to the Farmer to Families Food Box Program which has brought positivity to the dairy market in the past. The SNAP program benefit increases have been extended to September. Increased federal support for both product purchases through the Agricultural Marketing Service and the extra funding for necessary administrative improvements may boost dairy product purchases down the road.
Average Class III Prices:
| 3 Month: | $17.33 |
| 6 Month: | $17.76 |
| 9 Month: | $17.91 |
| 12 Month: | $17.80 |
Cheese:
Cheese production in January totaled 1.117 billion pounds, an increase of 0.5% compared to a year prior. American type cheese climbed 5% from last January to 459.3 million pounds. Cheddar alone increased 5.7% from a year ago to total 337.6 million pounds in January. Mozzarella production slipped slightly compared to 2020, declining 1.9% to 374.6 million pounds. Overall, Italian cheese types decreased 0.8% from last year to 481.5 million pounds for the month. Dry whey production totaled 82.9 million pounds, up 0.8% from a year ago.
Butter:
Butter production continue to push higher. January butter production totaled 206.9 million pounds, up 7% from the year prior. Nonfat dry milk production increased 11.7%, totaling 196.9 million pounds for the month. Skim milk powder production decreased 8% compared to 2020. Skim milk powder production totaled 36.9 million pounds for the month of January, the lowest monthly production amount in over a year.
Outside Markets Summary:
March corn declined 4 cents, closing at $5.4625. March soybeans increased 4.50 cents, closing at $14.1525. March soybean meal moved down $2.10 per ton, closing at $418.10. March wheat decreased 2.25 cents, ending at $6.4975. April live cattle dropped $0.85, closing at $118.55. April crude oil climbed $2.55, closing at $63.83 per barrel. The DOW fell 346 points, closing at 30,924. The NASDAQ also closed lower, dropping 274 points, closing at 12,723.
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