MILK
Class III milk futures did not respond to the stronger barrel cheese and dry whey price as traders did not like the slight weakness of blocks. However, later contracts posted double-digit gains as traders might anticipate stronger prices later in the year. The March Milk Production report was released today and showed stronger milk production somewhat as expected. Production in the top 24 states was 0.6% above March 2022. Production per cow averaged 2,116 pounds which was 3 pounds above a year ago. Cow numbers increased 6,000 head from February. Milk production in the country was 0.5% higher. Production per cow was up 3 pounds at 2,099 pounds. There were 6,000 cows more than February with the nation's herd totaling 9.435 million head. This is the highest cow numbers since August 2021. First quarter milk production was 1.0% higher than the first quarter of 2022. The Global Dairy Trade auction took place yesterday with the trade weighted average up 3.2% after four consecutive events showing lower prices. There were 158 bidders with 27,713 metric tons sold. Anhydrous milkfat increased 4.7% to $4,981 per metric ton or $2.26 per pound. Butter increased 4.9% to $4,821 per metric ton or $2.19 per pound. Cheddar cheese increased 5.7% to $4,411 per metric ton or $2.00 per pound. Skim milk powder increased 7.0% to $2,776 per metric ton or $1.26 per pound. Whole milk powder increased 1.0% to $3,089 per metric ton or $1.40 per pound. Buttermilk was not offered at this event and there were no prices for lactose and sweet whey powder.
AVERAGE CLASS III PRICES
| 3 Month: | $17.96 |
| 6 Month: | $18.46 |
| 9 Month: | $18.82 |
| 12 Month: | $18.80 |
CHEESE
Milk supply is plentiful for bottling and manufacturing. Spot milk prices remain in the wide range they have been in for a number of weeks with prices ranging from $4.00 to as much as $11.00 under class. At the same time, cheese demand is termed as steady to strong. Yet there are reports that cheese market tones have softened. Western cheese manufacturers report some plants are sold out for the rest of this month with contractual buyers. However, inventory is available for spot market demand.
BUTTER
Churning remains active providing sufficient supply for current demand. Demand is reported to have softened in the Central region. However overall demand is good but not as good as usual for this time of year. Supply is meeting current demand as well as allowing for inventory to build. The industry continues to remain comfortable with increasing inventory levels.
OUTSIDE MARKETS SUMMARY
May corn declined 5.25 cents closing at $6.7225. May soybeans declined 12.75 cents closing at $15.0650 with May soybean meal down $6.70 per ton closing at $454.40. May wheat fell 16.25 cents ending at $6.8175. April live cattle declined $1.05 closing at $175.42. May crude oil declined $1.70 closing at $79.16 per barrel. The Dow declined 80 points closing at 33,897 while the Nasdaq gained 4 points ending at 12,157.
