MILK
It was interesting to see Class III futures with a dividing line of strength and weakness. Futures contracts through September were lower, while later contracts were higher. This may have been due to the price estimates from USDA on Wednesday. USDA was very optimistic with their price increases, but they revised their estimates in line with the current trend. So even though barrel cheese and butter prices declined Thursday, the potential for stronger prices as the year progresses is what made buyers more aggressive in later contracts. Continued strong grain prices will have an impact on milk production. The value of dairy exports in January increased 16% from January 2021, totaling $586 million. This was an increase of $80.6 million from a year ago. Exports totaled 156,448 metric tons, a decline of 3% from a year ago. Exports of fluid milk and cream declined 20%, totaling 9,032 metric tons.
AVERAGE CLASS III PRICES
| 3 Month: | $23.40 |
| 6 Month: | $23.46 |
| 9 Month: | $23.22 |
| 12 Month: | $22.71 |
CHEESE
Cheese exports did well in January with total cheese exports up 17% to 29,433 metric tons. Of the total cheese exported, fresh cheese accounted for 8,846 metric tons, down 1%. Shredded cheese increased 21% to 6,284 metric tons. Cheddar cheese increased 73%, totaling 5,521 metric tons, with other cheese exports up 11% at 8,763 metric tons. Whey exports declined 16%, totaling 35,560 metric tons. Dry whey exports declined 34%, modified whey increased 4% and whey protein concentrate declined 10%.
BUTTER
Butter exports increased 25%, totaling 3,534 metric tons. Anhydrous milk fat totaled 1,371 metric tons, up 269% from a year ago. Nonfat dry milk/skim milk powder exports declined 6% to 59,406 metric tons. Whole milk powder declined 12% to 2,229 metric tons. Ice cream exports declined 1%, totaling 5,104 metric tons.
OUTSIDE MARKETS SUMMARY
March corn jumped 22.75 cents, closing at $7.5775. March soybeans gained 13.50 cents, closing at $17, with March soybean meal up $11.80 per ton, closing at $506.80. March wheat plummeted $1.2675, ending at $10.7375. April live cattle declined $1.67, ending at $135.90. April crude oil lost $2.68 per barrel, closing at $106.02. The Dow lost 112 points, ending at 33,174, while the NASDAQ declined 126 points, closing at 13,130.
