Monday Closing Dairy Market Update - Increased Butter and Cheese Production in February

MILK

Class III milk futures had to decline as no strength was found during spot trading. There had been some hope that the fall of prices last week would increase the interest of buyers this week. That may happen yet as we move through the week, but there was no indication of it today. Class IV futures were steady to slightly higher even though butter price fell back. Another winter storm will be making its way across some areas of the country again this week which will create some difficulties in picking up milk or delivering milk, but it likely will not impact the market overall. There have been a number of these storms during March and the industry has been able to move through them without too much difficulty or change in milk handling. Other areas of the country are seeing weather that is conducive to cow comfort and improving milk production.

AVERAGE CLASS III PRICES

3 Month:	$18.40
6 Month:	$18.62
9 Month:	$18.95
12 Month:	$18.97

CHEESE

USDA released the February Dairy Products report which showed American cheese production up 2.4% for February 2022 totaling 453 million pounds. Italian type cheese production decreased 1.4% below a year ago totaling 460 million pounds. total cheese output reached 1.11 billion pounds, up 0.4% above February 2022. Dry whey output totaled 66.5 million pounds, down 5.3% from a year ago.

BUTTER

February butter output reached 186 million pounds, up 1.6% from a year ago. Nonfat dry milk production totaled 178 million pounds, up 4.5% with skim milk powder production reaching 38.2 million pounds, up 28.9% from a year ago. Regular ice cream production increased 7.7% totaling 59.1 million gallons.

OUTSIDE MARKETS SUMMARY

May corn declined 2.75 cents closing at $6.5775. May soybeans gained 16.50 cents closing at $15.22 with May soybean meal down $1.80 per ton closing at $464.20. May wheat gained 1.25 cents closing at $6.9350. April live cattle declined $0.22 closing at $168.12. May crude oil jumped $4.75 closing at $80.42 per barrel. The Dow gained 327 points ending at 33,601 while the Nasdaq slipped 32 points closing at 12,1889.