MILK
There just does not seem to be any stopping dairy prices. The market gives the impression that there is a shortage of milk with buyers scrambling to buy whatever they can get their hands on. That is not the case, as there is sufficient milk for both bottling and manufacturing demand. Some milk is moving around to other areas to balance demand. Milk production is generally termed as steady in much of the country. Spot milk continues to show some discounts, but the availability of spot milk is tightening. There is a growing fear by processors over the supply of milk in the coming months. That is spurring strong buying interest of finished product. USDA left their 2022 estimate of milk production unchanged from December at 227.7 billion pounds, according to the World Agricultural Supply and Demand Estimates report released Wednesday. This would be a gain of just 1.5 billion pounds from the estimate for 2021. What is interesting on the report is that USDA reduced the estimate of commercial exports on a fat basis by 300 million pounds from the December estimate to a total of 11.2 billion pound. This would be 500 million pounds less than 2021. On a skim solids basis, exports were reduced 200 million pounds to 51.8 billion pounds but would be 200 million pounds higher than 2021. This estimated reduction is offset by strong commercial demand. Domestic use is estimated 600 million pounds higher than the December estimate at 222.4 billion pounds on a fat basis. This would be 1.4 billion pounds higher than 2021. On a skim solids basis, domestic use was raised 200 million pounds to 180.3 billion pounds. This would be 500 million pounds higher than 2021. Estimated milk prices were raised substantially. Class III was raised $1.50 from the December estimate to an average of $19.65. Class IV was raised $1.90 to an average of $20.90. The all-milk price was raised $1.85 from the December estimate to now average $22.60.
AVERAGE CLASS III PRICES
| 3 Month: | $21.80 |
| 6 Month: | $21.70 |
| 9 Month: | $21.53 |
| 12 Month: | $21.30 |
CHEESE
USDA raised its estimate for cheese price to an average of $1.8750, an increase of 10 cents per pound from the December estimate. Dry whey price was raised 7 cents to average 64.50 cents per pound for the year.
BUTTER
USDA raised its expectation for the average butter price this year to $2.30. This is an increase of 36 cents per pound from the December estimate. Nonfat dry milk was raised 4 cents from December to an average of $1.55 per pound this year.
OUTSIDE MARKETS SUMMARY
March corn declined 2 cents, ending at $5.99. January soybeans gained 14.50 cents, closing at $13.9125, with January soybean meal up $3.70 per ton, closing at $431. March wheat fell 12.50 cents, ending at $7.5775. February live cattle declined $1.10, closing at $136.57. February crude oil gained $1.42, closing at $82.64 per barrel. The Dow gained 38 points, ending at 36,290, while the NASDAQ gained 35 points, closing at 15,188.
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