MILK
Further pressure was put on milk futures again today with greater pressure on Class III contracts than Class IV. The weakness of blocks is exceeding the strength of barrels. USDA released the World Agricultural Supply and Demand report today which showed an increase in estimated milk production for this year of 200 million pounds reaching to 228.5 billion pounds. Milk prices were lowered with Class III estimated price now to average $17.55, down $0.35 from the February estimate. Class IV price is estimated at $18.30, an increase of $0.05. The All-milk price estimate was reduced $0.25 to average $20.45. It is a bit surprising USDA increased the estimate for Class IV. However, it is still bearish as the average price last year was $24.47. The average Class III price last year was $21.94. The average All-milk price last year averaged $25.56. This would be a dramatic decrease of income from a last year if these estimates come to fruition.
AVERAGE CLASS III PRICES
| 3 Month: | $17.65 |
| 6 Month: | $18.20 |
| 9 Month: | $18.67 |
| 12 Month: | $18.77 |
CHEESE
Block cheese price moved to the lowest level it has been since August 6, 2022. That is certainly concerning as cost of production has not decreased very much if at all. Lower cheese prices reduce milk prices. Current milk futures do not show much optimism. USDA reduced their estimate of the average cheese price to $1.81, down $0.05 from the February estimate. Dry whey price estimate was raised $0.0250 from February averaging $0.39 per pound.
BUTTER
The weakness of butter after three days of steady price might set the stage for further decline as buyers may hold back now that price has declined. USDA raised the price estimate of butter this year slightly to average $2.3350 per pound. Nonfat dry milk price was raised slightly to $1.23 per pound. This report will not have much influence on the market, but it does show the prediction for prices this year is substantially lower than the average last year.
OUTSIDE MARKETS SUMMARY
March corn declined 7.50 cents closing at $6.3450. March soybeans gained 1.50 cents ending at $15.26675 with March soybean meal declining $3.10 per ton closing at $498.40. March wheat declined 10.25 cents ending at $6.7450. April live cattle declined $0.52 closing at $165.45. April crude oil declined $0.92 closing at $76.66 per barrel. The Dow declined 58 points ending at 32,798 while the Nasdaq gained 46 points closing at 11,576.
