MILK
Class III milk futures improved Tuesday as the underlying cheese price stayed positive. More states are relaxing COVID restrictions, allowing restaurants to open or serve more dinners. Food service is starting to make reservations for larger events in the next few months and will be planning purchases accordingly. The Global Dairy Trade auction had a large improvement in the index value, climbing 15% higher than the previous event. The weighted average price increased to $4,231 per metric ton, or $1.92 per pound. Anhydrous milk fat price moved up 7.4% to $5,929 per metric ton, or $2.69 per pound. Butter jumped 13.7% to reach $5,826 per metric ton, or $2.65 per pound. Butter milk powder declined 0.3% to $3,144 per metric ton, or $1.4261 per pound. Cheddar cheese increased 1.3% to $4,280 per metric ton, or $1.94 per pound. Lactose gained 4.9% to move to $1,278 per metric ton, or $0.58 per pound. Skim milk powder moved up 3.5% to $3,302 per metric ton, or $1.50 per pound. Whole milk powder jumped 21% to $4,364 per metric ton, or $1.98 per pound.
AVERAGE CLASS III PRICES
| 3 Month: | $16.60 |
| 6 Month: | $17.31 |
| 9 Month: | $17.61 |
| 12 Month: | $17.61 |
CHEESE
Cheese price has seemingly stalled. The Global Dairy Trade cheese price has had small improvements in only the last three trading events and has not seen the significant improvement as powders have had. Exports of cheese tend to peak in the late spring, possibly spurring more demand into March.
BUTTER
Butter price continued to gain rapidly, adding 8 cents in Tuesday's spot market and persuaded class prices to follow. Class IV had strong gains, pushing contracts through next summer higher. The June price moved above $16 as contracts through December added 27 to 58 cents. The Global Dairy Trade butter price has been trending higher since October.
OUTSIDE MARKETS SUMMARY
March corn climbed 13.25 cents to close at $5.6075. March soybeans jumped 21.50 cents to end at $14.1250. March soybean meal increased $3.10 per ton to $423.30. March wheat gained 19.50 cents to close at $6.6325. April live cattle moved up 45 cents to $119.43. April crude oil decreased 89 cents to settle at $59.75 per barrel. The Dow fell back 144 points to close at 31,392. The NASDAQ also declined, moving down 230 points to 13,359.
