MILK
Milk futures closed mixed, much as they had been for most of the day and similar to where they were shortly after spot trading. May and December Class III futures remained below $18. The weakness of barrels and no change in blocks provided limited support to futures. February milk production was a bit higher than anticipated. Production and production per cow had to be adjusted due to one less day this year than last year. Thus, milk production in the top 24 states showed an increase of 2.3% when adjusted for the leap day. There was a large revision in milk production for January. Production was up 2.6% compared to January 2020. This was a large increase of 0.8% from last month's estimate. Milk production per cow in February totaled 1,882 pounds compared to a year ago when per-cow production totaled 1,926 pounds. Once the adjustment is made for the leap day, production per cow actually increased 24 pounds above a year ago. Cow numbers needed no adjustment, posting an increase of 2,000 head from January and 88,000 more than a year earlier. Milk production in the U.S. increased 2.0% compared to a year earlier. Milk production per cow increased 24 pounds from February 2020 when the adjustment was made for the leap day. Cow numbers increased 3,000 head from the previous month and are 81,000 head higher than February 2020.
AVERAGE CLASS III PRICES
| 3 Month: | $17.17 |
| 6 Month: | $17.66 |
| 9 Month: | $17.89 |
| 12 Month: | $17.82 |
CHEESE
Block cheese price has been holding steady, while barrel price has been trending lower. Either prices have reached a plateau or are holding until buyers become more aggressive. It seems the market has adjusted to the increase of restaurant demand and current government buying. Prices are expected to chop around and maintain a somewhat sideways-to-lower trend.
BUTTER
Some reports indicate cream supply is tightening, which may reduce butter production to some extent. However, butter churning remains active, leaving sufficient supply for demand. Buyers seem to have reached a threshold for the time being. There is little interest from buyers or sellers on the daily spot market.
OUTSIDE MARKETS SUMMARY
May corn fell 11.50 cents, closing at $5.4650. May soybeans fell 25.50 cents, closing at 13.9225, with May soybean meal down $6.70 per ton, ending at $398.20. May wheat declined 9.50 cents, closing at $6.3050. April live cattle declined $0.85, closing at $118.57. April crude oil plummeted $4.60, closing at $60 per barrel. The Dow declined 163 points, ending at 32,862, while the NASDAQ fell 409 points, closing at 13,116.
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