MILK
Class III milk futures closed lower Friday in response to the weakness of cheese prices. However, they did not see the pressure that should have been put on them with the decline Friday and the magnitude of the decline this week. Traders have been very conservative, thinking the market may rebound next week. That has been a pattern over the past number of weeks during which weakness one week has been reversed to some degree the following week. The April contract did lose about $1 this week after gaining about $1 last week. Maybe the pattern will hold, and price will be higher next week. USDA released the February Agricultural Prices report Friday. Corn price averaged $6.80, an increase of $0.16 per bushels from January. The premium/supreme hay price was $324 per ton, down $4 per ton from the previous month. Soybean meal price averaged $500.63 per ton, up $18.13 per ton from January. The all-milk price was $21.60 per cwt, down $1.50 from January. This resulted in an income over feed price of $6.19. The payment under the Dairy Margin Coverage program will be $3.31 per cwt if the $9.50 level was chosen. This is the lowest income over feed price since August 2021.
AVERAGE CLASS III PRICES
| 3 Month: | $18.54 |
| 6 Month: | $18.75 |
| 9 Month: | $19.05 |
| 12 Month: | $19.05 |
CHEESE
For the week, block cheese price fell 25 cents with only three loads traded. Barrel cheese price fell 15.50 cents with eight loads traded. It is interesting to note that cheese prices this week closed even lower than they were two weeks ago. It is surprising the weakness did not have a greater impact on the market. Dry whey gained 0.25 cent with one load traded. Traders will ponder over the weekend whether prices have fallen low enough to increase the interest of buyers or whether there is sufficient cheese available in the country without the need to come to the spot market.
BUTTER
Butter price gained 5.25 cents this week with 18 loads traded. It took back what was lost last week and then some. Grade A nonfat dry milk increased a penny with four loads traded. Price remains in a range with little reason to move outside of that range, as the market is balanced for the time being.
OUTSIDE MARKETS SUMMARY
May corn gained 11 cents, closing at $6.6050. May soybeans jumped 31 cents, closing at $15.0550, with May soybean meal up $6.10 per ton, closing at $466. May wheat was unchanged at $6.9225. April live cattle gained $0.80, ending at $168.35. May crude oil gained $1.30 per barrel, ending at $75.67. The Dow gained 415 points, closing at 33,274, with the NASDAQ up 208 points, closing at 12,222.
