MILK
The April Class I price was announced at $24.38, up $1.50 from March and up $8.87 from April 2021. This is the highest Class I price since May 2014. Class III milk futures closed mostly lower as the market takes a breather and waits for cash to catch up with it. Traders may have been a bit more cautious, as these lofty cheese prices may not be sustained without a price correction. May and June futures are at record highs. Class IV futures posted double-digit gains in all contacts except front-month March. Overall milk production in slowly improving relative to winter levels of production. Spring flush is just getting underway in much of the country and will continue for the next few months. Milk volume will be less than a year ago due to lower cow numbers, but an increase in milk production from the levels of winter will be welcomed by most plants.
AVERAGE CLASS III PRICES
| 3 Month: | $23.90 |
| 6 Month: | $24.29 |
| 9 Month: | $22.12 |
| 12 Month: | $23.66 |
CHEESE
The February Cold Storage report was released Wednesday, which showed American cheese inventory declining 4.1 million pounds from January, totaling 833.5 million pounds. This is 2% above a year ago. Granted, there are three fewer days of production relative to January, but there are also three fewer days of demand. Inventory is what it is and to see a decrease of American cheese for the second consecutive month for this time of year is unusual. Swiss cheese stocks increased 1.7 million pounds totaling 25.2 million pounds and is 16% above a year ago. Other cheese inventory increased 26.7 million pounds to a total of 610.7 billion pounds and 2% above a year ago. Total cheese inventory reached 1.469 billion pounds, up 24.7 million from January and 2% above a year ago.
BUTTER
Butter inventory totaled 263.0 million pounds, up 43.7 million pounds from January but remains 25% below a year ago. The increase was more than expected but it needs to go a long way before it will return to year-earlier levels.
OUTSIDE MARKETS SUMMARY
May corn gained 4.75 cents, closing at $7.5775. May soybeans jumped 22.25 cents, closing at $17.1875, with May soybean meal up $8.30 per ton, closing at $485.10. May wheat declined 12.50 cents, ending at $11.0576. April live cattle closed unchanged at $139.45. May crude oil jumped $5.66, closing at $114.93 per barrel. The Dow fell 449 points, closing at 34,359, while the NASDAQ declined 186 points, ending at 13,923.
