MILK
Class III milk futures came under pressure after spot trading took place with both blocks and barrels declining 0.75 cent. This was the first decline in barrels over 11 consecutive days. Could this be the beginning of a price retracement? USDA released the February Milk Production report today which showed milk production in the top 24 states up 1.0%. Production per cow averaged 1,892 pounds or 7 pounds above February 2022. Cow numbers increased 12,000 head from January. U.S. milk production totaled 17.7 billion pounds, up 0.8% from a year ago. Milk production per cow was 7 pounds higher than a year ago at 1,877 pounds. Cow numbers increased 12,000 head putting the nation's dairy herd at 9.42 million head. The increase of milk production is neutral to the market. Production per cow would be somewhat friendly. The increase of cow numbers is considered bearish as heavy culling is not taking place as was expected.
AVERAGE CLASS III PRICES
| 3 Month: | $18.53 |
| 6 Month: | $18.79 |
| 9 Month: | $19.08 |
| 12 Month: | $19.08 |
CHEESE
The 0.75 cent decline in both block and barrel cheese today might encourage buyers to pull back and move to the sideline to see whether sellers may become more aggressive. If immediate needs are covered, buyers may be satisfied with supply and may wait for a price pullback before stepping back in. The increase of cow numbers from January may take some of the recent bullishness out of the market as there had been anticipation cow numbers would decline from increased culling due to lower milk prices.
BUTTER
Butter price continues to hang out in a range with an initial stronger price during spot trading not able to hold. Price did close higher well within the balance of supply and demand. Churning is active with butter moving in the country to satisfy demand as well as supply moving to inventory.
OUTSIDE MARKETS SUMMARY
May corn gained declined 1.25 cents closing at $6.33. May soybeans gained 9.50 cents closing at $14.86 with May soybean meal down $3.30 per ton closing at $462.70. May wheat declined 9.75 cents closing at $7.0075. April live cattle declined $0.30 closing at $162.02. April crude oil gained $0.90 ending at $67.64 per barrel. The Dow gained 383 points closing at 32,245 while the Nasdaq gained 45 points closing at 11,676.
