MILK
Buyers of cheese became a bit more aggressive Thursday, taking advantage of the lower prices. Milk futures were able to rebound to some extent, but traders did not become overly excited about it. Market sentiment cannot be accurately assessed with only one or even a few days of activity. Some reports from the Central region indicate that milk production has recently increased so much as to indicate spring flush may be underway. This may only be the beginning with much more to come based on cow numbers and how production per cow is growing. Some indicate there really has not been a noticeable slowing of milk output because of the winter storm in February that created a lot of difficulties. Cows have maintained milk production throughout the period. Manufacturing plants indicate there is a lot of spot milk available with prices running from $2 to $6 under class. February Livestock Slaughter totaled 265,200. This was a decline of 12,100 from January and down 900 head from a year ago. This was the lowest February slaughter since 2018. The question here is whether it makes any difference that there was one less day this year than last year. I would say that it does not make any difference, as cow numbers always fluctuate and one less day does not necessarily mean that fewer cows will be slaughtered. Heavier culling across the country can take place on any given day.
AVERAGE CLASS III PRICES
| 3 Month: | $16.77 |
| 6 Month: | $17.35 |
| 9 Month: | $17.65 |
| 12 Month: | $17.65 |
CHEESE
It is reported that there has been some renewed interest for international buyers now that prices have declined. This will not be evident in the near-term, as it takes some time to move through the export channels, and some of it is being purchases now for later in the year. Most plants report good demand for cheese with some orders recently increasing, likely due to increasing restaurant demand. The increase of cheese prices Thursday may not turn the trend back up but may keep prices in the sideways range.
BUTTER
There are some reports of cream supply tightening in areas. This does not mean that there is a shortage, nor is there any thinking that there will be a shortage. There has been more demand coming from the increased manufacturing of higher-fat dairy products being produced for spring demand. Churning remains active and inventory is growing. Export demand remains strong, which will limit the growth of inventory.
OUTSIDE MARKETS SUMMARY
May corn declined 6.75 cents, closing at $5.4650. May soybeans fell 18.50 cents, closing at $14.1425, with May soybean meal up $3.60 per ton, closing at $404.60. May wheat fell 12.25 cents, ending at $6.1250. April live cattle gained $0.42, closing at $119.55. May crude oil fell $2.62, ending at $58.56 per barrel. The Dow gained 199 points, closing at 32,619, while the NASDAQ gained 16 points, closing at 12,978.
