MILK
There is some indication milk production is leveling off, possibly indicating that the heaviest level of spring flush may be behind us. However, milk production could continue to remain at high levels for a period as cow numbers are large and milk per cow is strong. There is sufficient milk to supply both bottling and manufacturing facilities. Milk is moving around in order to find manufacturing capacity and, so far, is finding a home. It is possible that milk is being processed more efficiently and can move out the door without any bottlenecks. This would streamline production and movement to consumers keeping supply from backing up. Milk futures remain supported with May through November contracts above $19. The Federal Order price were announced for the month of April. The Class II price is $15.56, an increase of $0.49. The Class III price gained $1.52 to a price of $17.67. The Class IV price was announced at $15.42, an increase of $1.24. The value of dairy exports in March $688.0 million and 16.2% above a year ago. Total exports reached 215,557 metric tons, up 24.2% from March 2020.
AVERAGE CLASS III PRICES
| 3 Month: | $19.59 |
| 6 Month: | $19.61 |
| 9 Month: | $19.25 |
| 12 Month: | $18.95 |
CHEESE
Cheese exports did well in March, posting a gain of 10.7%, totaling 36,919 metric tons. The lower pricing period last year resulted in more demand for cheese from the U.S. due to competitive prices. Year-to-date exports are up 0.1%. Dry whey exports increased 28.8%, totaling 57,181 metric tons. Total whey exports are up 24.3% so far this year.
BUTTER
Butterfat exports were very strong again with exports up 147.9%, totaling 4,551 metric tons. Year-to-date exports are up 114.9%. Skim milk powder/nonfat dry milk exports reached 86,532 metric tons and 38.8% above a year ago. Whole milk powder exports totaled 4,373 metric tons and were 11.5% higher than March 2020 with year-to-date exports up 7.8%.
OUTSIDE MARKETS SUMMARY
May corn gained 8.50 cents, closing at $7.5325. May soybeans closed 5 cents higher at $15.82 with May soybean meal up $0.80, closing at $424.30 per ton. May wheat jumped 18.75 cents, closing at $7.5575. June live cattle jumped $1.42, closing at $114.47. June crude oil slipped $0.06, ending at $65.63 per barrel. The Dow gained 97 points, closing at 34,230, while the NASDAQ declined 58 points, closing at 13,582.
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