MILK
Milk futures settled back into the close erasing the gains seen much of the day. Grain prices increased significantly, but the strength did not translate over into the dairy complex. However, all Class III futures contracts closed higher for the week except for front-month April. The April contract has two days remaining to trade with the Federal Order prices to be announced on Wednesday. USDA released the March Agricultural Prices report Friday. Now, I know that some will express some disbelief to the prices as it feels like feed prices have been high for a while. However, you need to go back and look at the price charts to see price movement during March. The income over feed price for the month was $6.46, up $0.24 from February. Those who chose the $9.50 level for the Dairy Margin Coverage program will receive at payment of $3.04 per cwt. The average corn price was $4.89 per bushel, up $0.14 from February and up $1.21 per bushel from a year earlier. The alfalfa hay price was $181 per ton, up $6 from February and up $9 from March 2020. The supreme/premium hay price was $210 per ton, down $1 per ton from February, but up $5 per ton from a year ago. This resulted in an alfalfa blend price used in the income over feed calculation of $195.50 per ton. The Central Illinois soybean meal average price was $410.02 compared to a February price of $427.28 per ton. The all-milk price increased $0.30 to $17.40 per cwt.
AVERAGE CLASS III PRICES
| 3 Month: | $18.89 |
| 6 Month: | $19.29 |
| 9 Month: | $19.14 |
| 12 Month: | $18.86 |
CHEESE
For the week, blocks increased 0.75 cent with 24 loads traded. Barrels increased 3 cents with 12 loads traded. Dry whey price increased 4 cents with six loads traded. Block cheese has had a fairly flat week, keeping prices in a sideways range it has been in for nearly a 1 1/2 months. The market seems balanced at the present time with buyers and sellers comfortable doing business at the current price level.
BUTTER
For the week, butter declined 1.75 cents with 21 loads traded. Grade A nonfat dry milk price gained 7.25 cents with 16 loads traded. Price has been struggling since reaching a high of $1.9050 on April 12. The question is whether butter is an indicator as to the eventual direction of cheese prices.
OUTSIDE MARKETS SUMMARY
May corn jumped 38 cents, closing at $7.40. May soybeans gained 28.50 cents, ending at $15.71, with May soybean meal up $3.40 per ton, closing at $426. May wheat increased 5 cents, closing at $7.4250. June live cattle increased $0.52, closing at $116.57. June crude oil declined $0.71, closing at $53.09 per barrel. The Dow declined 186 points, closing at 33,875, while the NASDAQ lost 120 points, closing at 13,963.
