MILK
The front-month April Class III futures contract was 2 cents lower as it adjusts slightly from day to day. This contract is priced with limited movement taking place over the next week until the price announcement next Wednesday. May was down 8 cents, which was a bit surprising, as it is carrying very little premium to spot prices. Choppy price movement is keeping this contract subdued. February fluid milk sales were lagging last year. It seems that the huge increase in milk demand and consumption was only for a brief period early in the pandemic. Total fluid milk sales in February were 3.2% lower than what they were in February 2020. Remember, there was one less day this year than last year, as well, but this is recording sales, which may not make much difference. Conventional milk sales declined 3.8%. Whole milk sales declined 3.2%, flavored whole milk increased 5.0%, reduced-fat increased 3.4%, low-fat sales fell 6.2%, fat-free skim fell 17.4%, flavored fat-reduced sales fell 31.0% with buttermilk down 5.9%. Organic sales increased by 6.8%. Organic whole milk increased 4.1%, organic reduced fat increased 9.8%, organic low fat increased 7.1%, organic fat-free skim gained 2.3% and organic flavored fat-reduced milk sales increased 25.8%. The reason for the overall decline of sales is the fact that organic sales volumes are substantially less than conventional.
AVERAGE CLASS III PRICES
| 3 Month: | $18.79 |
| 6 Month: | $19.13 |
| 9 Month: | $19.03 |
| 12 Month: | $18.79 |
CHEESE
Milk remains readily available for manufacturing. Plants are doing the best they can to absorb increasing milk receipts as spring flush is upon us. Production schedules are full. Cheese demand is good both through retail and foodservice industry channels. The market may have moved into a period of uncertainty as the restaurant pipeline is supplied with demand somewhat more steady.
BUTTER
Demand for butter is improving for the foodservice industry but has also been lower at the retail level. This would stand to reason as more people eating out again will translate into less consumption at home. Inventory continues to remain large despite only a minor increase of inventory in March.
OUTSIDE MARKETS SUMMARY
May corn gained 15 cents, closing at $6.9550. May soybeans fell 19.25 cents, closing at $15.4975, with May soybean meal down $3.30 per ton, closing at $425.50. May wheat declined 5.75 cents, ending at $7.3375. April live cattle slipped $0.12, closing at $118.37. The Dow gained 3 points, closing at 33,985, while the NASDAQ declined 49 points, lower at 14,090.
