MILK
Spring flush is beginning in some areas of the country while the West and South are near the peak of flush. Spot milk prices in the upper Midwest are running $1 to $5 under class, showing a slight reduction from the previous week. Most plants are running at full capacity with strong demand utilizing what is being produced. The limiting factor this year might be processing capacity rather than a lack of demand. Some plants have implemented production limits, but I have not heard as much of this as I have heard of over the past few years. This is not taking into account last year after COVID hit, which resulted in drastic production cuts and milk dumped. Class I milk sales are stable as spring breaks have ended for school systems. Foodservice sales are strong and have increased more than anticipated over a short period of time. U.S. City Average Retail Price for whole milk in March average $3.35 per gallon. This is an increase of 10 cents per gallon over March 2020 but a decrease of 2 cents per gallon from February.
AVERAGE CLASS III PRICES
| 3 Month: | $18.58 |
| 6 Month: | $18.76 |
| 9 Month: | $18.65 |
| 12 Month: | $18.42 |
CHEESE
For the week, blocks declined 5 cents with 18 loads traded. Barrel declined 0.25 cent with 30 loads traded. Losses of the week were trimmed with the gains Friday. Dry whey gained 4.50 cents with five loads traded. This is the highest dry whey price since the week of Sept. 17, 2014. That is when only weekly prices were recorded. Daily spot trading for dry whey did not begin until March 2018. The U.S. City Average Retail Price for natural cheese in March was $5.68, up $0.35 per pound from last year and up $0.08 from February. The average process cheese price was $4.15, up $0.24 from a year ago, but down a penny from February.
BUTTER
For the week, butter declined 3 cents with 13 loads traded. Grade A nonfat dry milk increased a penny with 27 loads traded. Butter production is mostly steady in most regions, but cream supply is tightening as ice cream manufacturing increases. Retail and food service demand is strong, keeping butter moving through the market, limiting the amount of supply going to inventory.
OUTSIDE MARKETS SUMMARY
May corn declined 4.50 cents, ending at $5.8550. May soybeans jumped 15 cents, ending at $14.3325, with May soybean meal up $0.30 per ton, closing at $402.20. May wheat slipped 1.25 cents, closing at $6.5250. April live cattle declined $0.75, ending at $120.82. May crude oil declined $0.33, closing at $63.13 per barrel. The Dow gained 165 points, ending at 34,201, while the NASDAQ gained 14 points, closing at 14,052.
