MILK
Milk futures gained substantially during the week, resulting in five contracts in Class III closing above $23 with three Class IV contracts closing above $25. The optimism of traders and the supporting underlying cash prices have provided substantial support. Significantly higher grain prices had some impact, but not very much and may affect it more as time moves forward if prices remain high. Good weather has increased cow comfort, and milk production has increased somewhat in response to it. Spot milk prices in the Central region are reported to be $1.50 under class to right at class price. It seems somewhat odd that spot milk price is not higher or supply not tighter. Bottling demand is termed as steady with cheese production with demand remaining strong.
AVERAGE CLASS III PRICES
| 3 Month: | $23.28 |
| 6 Month: | $23.30 |
| 9 Month: | $22.99 |
| 12 Month: | $22.45 |
CHEESE
American cheese production in January totaled 480 million pounds, according to the January Dairy Products report released Friday. This is 1.1% above a January 2021. Italian type cheese production totaled 489 million pounds, up 1.7% over a year ago. Total cheese output reached 1.17 billion pounds, up 2.8% above a year ago. Dry whey output totaled 80.3 million pounds, down 4.4% from January 2021. Lactose production totaled 101 million pounds, up 7.2%. Whey protein concentrate production totaled 47.5 million pounds, up 8.5%. For the week, blocks increased 20.50 cents with 10 loads traded. barrels increased 7 cents with 21 loads traded. Dry whey dry declined 2.50 cents with 6 loads traded.
BUTTER
Butter production in January totaled 195 million pounds, a decrease of 6.9% from January 2021. However, production increased 8.5% from December, which is notable due to both months having the same number of days. However, December had fewer production days. Nonfat dry milk output totaled 171 million pounds, down 13.8% while skim milk powder increased 20.6%, totaling 43.4 million pounds. For the week, butter increased 9.75 cents with 27 loads traded. Grade A nonfat dry milk increased 1.25 cents with 14 loads traded.
OUTSIDE MARKETS SUMMARY
March corn gained 5.25 cents, closing at $7.5650. March soybeans declined 4 cents, closing at $16.7625, with March soybean meal up $7.50, closing at $468.90 per ton. March wheat jumped 59 cents, ending at $13.48. April live cattle fell $2.57, closing at $135.77. April crude oil jumped $8.01, closing at $115.68 per barrel. The Dow declined 180 points, closing at 33,615, while the NASDAQ declined 225 points, closing at 13,313.
