MILK
Milk production remains variable with some areas beginning to show signs of spring flush while other areas are holding steady. Demand is termed as seasonal. This week, reports have surfaced of spot milk being offered and purchased of as much as $12.00 under class. This is very unusual for this time of year and unusual so far this year as every week since Christmas, spot milk has been available for as much as $10.00 under class consistently. This is cause for concern as spring flush is just around the corner. Demand will need to improve for both bottling and manufacturing or there could be an overabundance of milk for a period. USDA will release the February Milk Production report on Monday. Cow numbers will likely be watched more closely to see if culling has been increasing. On the December report we saw a decline of 8,000 head from the previous month while the January report showed an increase of 9,000 head. That was quite a swing with this report possibly providing more clarity to cow numbers. Production per cow is expected to remain strong.
AVERAGE CLASS III PRICES
| 3 Month: | $18.70 |
| 6 Month: | $19.00 |
| 9 Month: | $19.26 |
| 12 Month: | $19.23 |
CHEESE
For the week, block cheese increased 21 cents with 13 loads traded. Barrels increased 19 cents with 36 loads traded. Over the past two weeks, barrel price has increased 36.50 cents moving price back to the highest level it has been since November 17, 2022. Dry whey price gained 1.75 cents with three loads traded. Demand is termed as strong for cheese with some recent increases noted. Barrel cheese supplies remain more abundant than blocks according to Dairy Market News. However, you would not think that due to the recent strength of barrels. Current cheese prices are becoming uncompetitive on the export market according to some reports.
BUTTER
For the week, butter increased 6.75 cents with six loads traded. Grade A nonfat dry milk gained 1.25 cents with five loads traded. Butter demand has shown a little uptick as retail buyers look ahead to Easter demand as well as increased spring demand.
OUTSIDE MARKETS SUMMARY
May corn gained 1.50 closing at $6.3425. May soybeans fell 15 cents closing at $14.7650 with May soybean meal declining $8.00 per ton closing at $466.00. May wheat gained 11.50 cents closing at $7.1050. April live cattle slipped $0.02 closing at $162.32. April crude oil declined $1.61 per barrel ending at $66.74. The Dow declined 385 points closing at 31,862 with the Nasdaq declining 87 points closing at 11,631.
