MILK
There was anticipation the recent strength of cheese prices would not hold. Milk production continues to slowly improve leaving sufficient supply available to the market. As was reported yesterday, spot milk prices in the Midwest are still running as much as $10.00 below class. USDA estimated milk production for 2022 to be 226.8 billion pounds, a decrease of 200 million pounds from their December estimate. This would result in only an increase of 500 million pounds from 2021. They also reduced their estimate of milk production this year to 229.2 billion pounds, a decrease of 300 million pounds from their December estimate. The Class III milk price average estimate for 2022 was reduced a penny to $21.94. The estimated Class III average price for this year is $18.85, down $0.95 from the previous estimate. Class IV price was reduced $0.03 in 2022 to an average of $24.47 while the estimate for this year was lowered $0.85 to $19.25. The All-milk price was lowered $0.10 to an average of $25.55 for 2022 while the average for this year is estimated at $21.60, down $1.10 from the December estimate.
AVERAGE CLASS III PRICES
| 3 Month: | $18.90 |
| 6 Month: | $18.96 |
| 9 Month: | $19.24 |
| 12 Month: | $19.42 |
CHEESE
Cheese may have fallen into a void that will result in yet lower prices tomorrow. The weakness may send buyers to the sideline waiting to see how aggressively sellers will want to move product. The weakness today impacted milk futures through July while later contracts saw little activity and slightly higher prices. The USDA released its estimate for cheese prices. They increased their estimate for the average cheese prices to $2.1122, slightly higher than December. The estimate for this year is $1.93, a decrease of 6.50 cents from December.
BUTTER
Butter held today as buyers and sellers continue to remain comfortable. USDA estimates butter price slightly lower to an average of $2.8665 for 2022. The estimate for this year was reduced 13.50 cents to an average of $2.33. Dry whey price for this year was reduced slightly to 60.35 cents while the average for this year is estimated at 41.50 cents, down 5 cents.
OUTSIDE MARKETS SUMMARY
March corn jumped 15 cents closing at $6.71. January soybeans gained 14.50 cents closing at $15.2950 with January soybean meal up $8.00 closing at $513.00. March wheat gained 2.75 cents ending at $7.4275. February live cattle declined $0.20 ending at $157.55. February crude oil gained $0.98 closing at $78.39 per barrel. The Dow gained 217 points closing at 34,190 while the Nasdaq gained 69 points at 11,001.
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