MILK
Class III milk futures were not affected by the increase of barrel price on the spot market. However, it seems that there was some minor strength that stemmed from the strong close of grain prices again Tuesday. The actual underlying price calculation declined slightly from Monday even though barrel cheese price increased. The decline of dry whey had a greater impact on the price calculation. However, milk futures closed slightly higher, likely in response to another strong day in the grain markets. Strong anticipation remains that milk prices will increase as long as grain prices remain higher. The Global Dairy Trade auction was held Tuesday with the result being a slight decline of the trade-weighted average of 0.7%. Anhydrous milk fat declined 4.2% to $4,730 per metric ton or $2.60 per pound. Butter fell 12.1% to $5,035 per metric ton or $2.28 per pound. Buttermilk powder jumped 14.4% to $4,222 per metric ton or $1.92 per pound. Cheddar cheese declined 4.5% to $4,274 per metric ton or $1.94 per pound. Lactose declined 2.0% to $1,236 per metric ton or $0.56 per pound. Skim milk powder gained 2.0%, ending at $3,433 per metric ton, or $1.56 per pound. Whole milk powder increased 0.7% to $4,115 per metric ton or $1.87 per pound.
AVERAGE CLASS III PRICES
| 3 Month: | $19.56 |
| 6 Month: | $19.55 |
| 9 Month: | $19.19 |
| 12 Month: | $18.89 |
CHEESE
Cheese production in all categories increased over a year ago in all categories. American cheese production totaled 479 million pounds, up 7.3% above March 2020. Italian-type cheese production totaled 503 million pounds, up 3.6% over March 2020. Total cheese production reached 1.18 billion pounds, up 4.8% above a year ago. Dry whey output totaled 84.3 million pounds, up 0.9%. These numbers will be skewed for a few months, as production last year was disrupted due to COVID and the resulting lockdowns and dumping of milk. However, it does show strong output by the totals in themselves.
BUTTER
Butter output in March totaled 199 million pounds, which was 0.6% below March 2020. Nonfat dry milk totaled 198 million pounds, up 14.1%, with skim milk powder production totaling 38.3 million pounds, down 31.4% from a year ago.
OUTSIDE MARKETS SUMMARY
May corn jumped 13.75 cents, closing at $7.46. May soybeans jumped 16.75 cents, closing at $15.77, with May soybean meal gaining $7.30 per ton to close at $423.50. May wheat jumped 11.50 cents, closing at $7.37. June live cattle plummeted $2.27, ending at $113.02. June crude oil gained $1.20, closing at $65.69 per barrel. The Dow increased 20 points, settling at 34,133, while the NASDAQ fell 262 points, closing at 13,634.
