MILK
Class III milk futures moved substantially higher again Tuesday with April through June prices around $24.50 per cwt. These prices are knocking on the door of setting new records. All commodity markets are crazy with volatility. Corn and wheat prices were all over the place with energy prices posting substantial volatility due to the Biden administration halting imports of all oil and coal from Russia. This will add much to the cost of the production of grain and milk. This may continue to move markets substantially higher, or it could cause demand destruction and the fall of prices. A new South American dairy price platform has been created. The first prices have been released Tuesday and will be released every 15 days in order to provide more transparency for the world markets. The Argentine dairy market reported a total of 14,983.98 tons of dairy products moved over the period from Jan. 16 through Jan. 31. The average price per ton was $3,849.66 with product moving to 24 export destinations. Whole milk powder averaged $3,794.11 per ton or $1.90 per pound. Skim milk powder averaged $3,239.34 per ton or $1.62 per pound. Semi-hard cheese averaged $3,991.68 per ton or $2 per pound. Hard cheese averaged $6,003.38 or $3 per pound. Butter averaged $4,776,17 per ton or 2.39 per pound. Buttermilk powder averaged $2,470.07 per ton or $1.24 per pound. The Uruguayan dairy market reported 7,244.62 tons exported to 26 destinations at an average of $3,852.16 per ton over the period of Feb. 16-28. Whole milk powder averaged $3,829.51 per ton or $1.91 per pound. Skim milk powder averaged $3,304.53 per ton or $1.65 per pound. Semi-hard cheese averaged $4,120.65 per ton or $2.06 per pound. Hard cheese averaged $5,984.54 per ton or $2.99 per pound. Butter averaged $5,160.79 per ton or $2.58 per pound. Buttermilk averaged $2,659.93 per ton or $1.33 per pound.
AVERAGE CLASS III PRICES
| 3 Month: | $23.96 |
| 6 Month: | $24.04 |
| 9 Month: | $23.69 |
| 12 Month: | $23.08 |
CHEESE
USDA will release its latest World Agricultural Supply and Demand Estimates report Wednesday, which is expected to show significant increases of milk and dairy production price estimates for this year. The trend has been higher, and USDA generally changes its estimates in relation to what has transpired since the previous estimates. Last time, it increased estimates. Traders reacted significantly to the higher estimates pushing prices higher. I do not think it will make much difference this time due to the market already being extremely bullish.
BUTTER
Price may be heading back to the highs again if buyers continue to remain aggressive. Supply is tighter in bulk butter, but overall supply is sufficient for demand.
OUTSIDE MARKETS SUMMARY
March corn gained 5.25 cents, closing at $7.5450. March soybeans jumped 30.25 cents, closing at $17.0450, with March soybean meal up $22.00 per ton, closing at $489.90. March wheat fell $1.5225, closing at $12.73. April live cattle gained $1.15, closing at $139.05. April crude oil gained $4.30, closing at $123.70 per barrel. The Dow declined 185 points, closing at 32,633, while the NASDAQ declined 35 points, closing at 12,796.
.jpg)
