MILK
Milk futures remained higher despite some decline from butter and barrel prices. Class IV remained above $25, while Class III slipped but still just above $23. Nonfat dry milk continues to provide support and averaged 79.5 cents per pound for the week. Grade A nonfat dry milk closed at $1.8750 with seven loads traded. Dry whey averaged $0.79 per pound for the week and closed Wednesday at $0.7400 with two loads traded. While inflation keeps knocking, higher milk prices continue, but it doesn't necessarily mean money in the bank.
AVERAGE CLASS III PRICES
| 3 Month: | $22.79 |
| 6 Month: | $22.81 |
| 9 Month: | $22.54 |
| 12 Month: | $22.02 |
CHEESE
Cheese spot prices were mixed with blocks gaining 2.50 cents to $2.0550, while barrels slipped 1.50 cents to close with $1.9200. Blocks averaged $1.94 per pound, increasing by 5.5 cents, while barrels were up 4.9 cents to $1.93 per pound for the week. While there are reports of tighter spot milk availability, cheese plants are receiving steady milk supplies and retaining busy production schedules. Demand for domestic and international customers has been progressively strong. Food service demand is starting to pick up as COVID restrictions deteriorate, and retail sales stay positive.
BUTTER
Butter makers are watching the current invasion on the Russia/Ukraine situation, as it's important to watch what global milkfat suppliers plan on shipping into Russian ports. Eighty percent butterfat is from 0.6000 to 0.1500 per pound. Inventory of butter is tight, though some availability is starting to increase. The January Cold Storage report showed at 33% decline in year-to-year inventory levels. Butter prices for the week increased 1.9 cents to $2.71 per pound.
OUTSIDE MARKETS SUMMARY
March corn slipped 0.75 cent to close at $7.39 per bushel. March soybeans fell 28 cents ending at $16.7750 per bushel with March soybean meal down $6 per ton, closing at $457.70 per ton. March wheat closed at $10.5850, up 56.75 cents. April live cattle declined $0.43 cents at $140.10. April crude oil increased $8.45 per barrel, ending at $111.86. The Dow gained 643.77 points, closing at 33,938.72, while the NASDAQ gained 234.94 points, closing at 13,769.08.
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