MILK
Milk futures are in the process of regaining the losses of the previous week. It will be up to underlying cash to see whether the losses will be fully regained. USDA released the February Agricultural Prices report Thursday, showing the average corn price for the month at $6.10 per bushel, up $0.53 from January and up $1.35 from February 2021. The premium/supreme hay price was $266 per ton, up $4 per ton from January and up $55 per ton from a year ago. The all-milk price increased to $24.70, up $0.50 from January and up $7.60 from a year ago. I was not able to access the soybean meal price through the central Illinois processor report. The report has been moved and was inaccessible. I will follow up with the soybean meal price and the income-over-feed price for the month of February in my commentary Friday. USDA released its estimates for planted acreage Thursday. It estimates corn acres at 89.5 million, down 3.9 million acres from last year. Soybean acres are estimated at 91.0 million, an increase of 3.8 million acres from last year. This pushed new-crop corn futures 27.75 cents higher with new-crop soybean futures down 49.75 cents.
AVERAGE CLASS III PRICES
| 3 Month: | $24.14 |
| 6 Month: | $23.98 |
| 9 Month: | $23.63 |
| 12 Month: | $22.11 |
CHEESE
The rebound of cheese renewed the bullishness of the market. Traders were quick to jump in to buy futures in the anticipation of yet higher prices. It is uncertain whether cheese prices will regain what they had lost recently. Demand is good and manufacturers are busy processing increasing milk receipts. Higher corn prices may continue to support milk prices as well as potentially keep culling higher than usual and milk supply from growing.
BUTTER
International butter demand is strong, keeping plants busy producing product for export shipments. Buyer demand is good for obtaining supply to build inventory for later in the year. Ice cream production is steadily improving, pulling on some of the available cream supply. There is limited price potential in the near term as supply is sufficient for demand.
OUTSIDE MARKETS SUMMARY
May corn increased 10.75 cents, closing at $7.4875. May soybeans fell 45.75 cents, ending at $16.1825, with May soybean meal down $5.60 per ton, closing at $467.50. May wheat declined 21.25 cents, ending at $10.06. April live cattle declined $0.80, ending at $139.37. May crude oil fell $7.54, closing at $100.28 per barrel. The Dow fell 550 points, closing at 34,678, while the NASDAQ declined 222 points, closing at 14,221.
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