MILK:
Dairy market news reports that milk production in the West and Southwest is steady to higher. Trucking logistics remain a thorn in the side as limited trucker availability hinders the movement of milk to other areas and out of state. Labor shortages and some other plant issues are causing plants to offer milk at a discount to move it to other facilities that can handle it. This is not necessarily bearish to the market but creates headaches and less profitability for those plants involved. It is probably a good thing that milk supply is lighter than last year or there could be a lot of problems handling milk moving through spring flush. Farms are seeing more milk per cow, increasing milk receipts at the plant level rather than sending more milk due to increasing cow numbers. With the current market situation for feed and other costs involved in producing milk, farmers will not be very willing to add cows to existing operations or expand facilities unless greater profitability returns. USDA will release the World Agricultural Supply and Demand report Friday, providing their estimates for milk production, milk prices and product prices for this year. It will be their initial estimates for 2023 production and prices as well.
AVERAGE CLASS III PRICES:
| 3 Month: | $24.47 |
| 6 Month: | $24.41 |
| 9 Month: | $24.09 |
| 12 Month: | $23.52 |
CHEESE:
International interest remains strong for cheese with U.S. cheese well-priced in relationship with world prices. February cheese exports increased 9.2% over February 2021. The conflict in Ukraine should have little impact on exporting and world demand. Domestic demand has been steady, which has kept American cheese inventory from building so far this year. However, inventory continues to remain higher than a year ago.
BUTTER:
Butterfat exports in February were huge at 6,755 metric tons, up 74.7% from a year earlier. International interest remains strong with lower milk production in New Zealand, curtailing some of their exports of butter to the world market. Churning is active as plants are utilizing available cream to satisfy demand as well as build inventory.
OUTSIDE MARKETS SUMMARY:
May corn increased by 1.25 cents, closing at $7.5775. May soybeans jumped 26 cents, ending at $16.4550, with May soybean meal down $1.60 per ton, closing at $460.20. May wheat fell 18.25 cents, closing at $10.20. April live cattle closed $0.30 higher at $138. May crude oil slipped $0.20, closing at $96.03 per barrel. The Dow gained 87 points, ending at 34,584 while the NASDAQ gained 8 points closing at 13,897.
