MILK
Milk futures fell significantly again Tuesday. Monday, the decline was a bit overdone, but cash caught up with the decline of futures coupled with the decline Tuesday, leaving contracts somewhat in line. Some of this might be attributed to the developing situation in Ukraine. There were ceasefire talks Tuesday, but they did not result in a ceasefire. However, it did provide hope that things may settle down and farmers will be able to plant and harvest crops in Ukraine. This took some steam out of the grain markets and indirectly might have had an impact on dairy. All commodity markets are volatile, and any news could have a profound short-term impact on markets. USDA published the final rule for the origin of livestock for organic dairy Tuesday. USDA states, "This change to the USDA organic regulations will promote a fairer and more competitive market for all organic dairy producers, by making sure the certified USDA organic dairy products are produced to the same consistent standard." The new rule allows a dairy operation to transition non-organic animals to organic one time. This prohibits organic dairies from sourcing any transitioned animals. Also, animals must be managed as organic from the last third of gestation. This may not sound like a bid deal, but it clarifies some gray areas that existed.
AVERAGE CLASS III PRICES
| 3 Month: | $23.44 |
| 6 Month: | $23.42 |
| 9 Month: | $23.24 |
| 12 Month: | $22.82 |
CHEESE
Block cheese price had the largest one-day decline since July 15, 2021. The proverbial void opened under the market Tuesday. Buyers held back, waiting for lower prices. The market fell more than expected, which may increase the interest of buyers to step back into the market again. After all, overall fundamentals have not changed much over the past few days.
BUTTER
Price has become more entrenched in its sideways pattern, moving toward the lower end of the range. Some of the concern over tight supply has been removed from the market with sufficient supply to meet demand and increase inventory. Buyers have been purchasing supply quite a bit more ahead than usual as a hedge against potential higher prices as the year progresses.
OUTSIDE MARKETS SUMMARY
May corn fell 22.25 cents, ending at $7.2625. May soybeans fell 21.25 cents, closing at $16.43, with May soybean meal down $12.90 per ton, closing at $466. May wheat fell 42.75 cents, closing at $10.1425. April live cattle gained $0.60, ending at $140.90. May crude oil declined $1.72, closing at $104.24 per barrel. The Dow gained 338 points, closing at 35,294, while the NASDAQ gained 265 points, closing at 14,620.
