MILK
Milk production is increasing due to better spring weather allowing for increased cow comfort. The volume of milk is not expected to exceed last year due to lower cow numbers, but it is expected to steadily increase. This will not overwhelm the market, as many cheese plants are looking for extra milk to process into cheese to meet demand as well as build some inventory. Class III milk futures pushed quite a bit higher during spot trading but were unable to hold those highs after short-covering ran its course. Futures closed with double-digit gains when closing prices were set for the day. However, continued electronic trading resulted in June through September contracts falling into negative territory. Prices will settle higher, as contracts will close at the settlement prices. There could be lower trade in the overnight session as indicated by late trading. It is confusing as to why the late pressure surfaced. Maybe we will know more Friday as the day progresses.
AVERAGE CLASS III PRICES
| 3 Month: | $24.61 |
| 6 Month: | $24.07 |
| 9 Month: | $23.45 |
| 12 Month: | $22.70 |
CHEESE
USDA released the March Dairy Products report Wednesday, which showed the volume of dairy products produced during the month. American cheese output totaled 474 million pounds, which was 1.4% below March 2021. This is likely why inventory declined in March on the cold storage report. Italian-type cheese production totaled 513 million pounds, up 2.1% over a year earlier. Total cheese production reached 1.20 billion pounds and 1.1% above March 2021. Dry whey output totaled 82.0 million pounds, an increase of 6.6% above a year ago. Whey protein concentrate increased 1.3% to 41.4 million pounds, while lactose production totaled 95.3 million pounds, down 2.6%.
BUTTER
Butter production in March reached 203 million pounds, up 1.5% from March 2021. Nonfat dry milk output was 190 million pounds, down 3.9%. Skim milk powder totaled 33.0 million pounds, down 37.2% for a year ago. Regular ice cream production was down 2.8%, totaling 67.1 million gallons.
OUTSIDE MARKETS SUMMARY
May corn gained 5.25 cents, closing at $8.0375. May soybeans gained 8.75 cents, closing at $16.7850, with May soybean meal down $1.40 per ton, closing at $426.90. May wheat jumped 30 cents, closing at $10.96. June live cattle declined $1.05, closing at $133.77. June crude oil increased $0.45, ending at $108.26 per barrel. The Dow fell 1,063 points, closing at 32,998, while the NASDAQ fell 647 points, closing at 12,318.
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