MILK
Cheese prices increased during the week, but one would not know it by looking at milk futures prices. Nearby Class III futures did not show much gain compared to a week ago while differed contracts closed lower. Class IV futures generally closed lower for the week. USDA decreased its estimate for milk production for 2023 by 300 million pounds to a total of 226.6 billion pounds. This would only be 100 million pounds above 2022. They decreased their estimate for this year by 700 million pounds to a total of 228.3 billion pounds. This would be a record milk output if it comes to fruition. Exports on a fat basis were increased in 2024 by 200 million pounds but decreased in 2023 by 200 million pounds. The Class III milk price estimate was reduced $0.03 to $17.02 while the average price for 2024 was reduced $0.75 to $16.10. The Class IV price was increased $0.02 for 2023 to $19.12 while the price for 2024 was increased $0.45 to $19.35. The All-milk price was left unchanged for 2023 at $20.60 and reduced $0.25 for 2024 from their December estimate to an average of $20.00.
AVERAGE CLASS III PRICES
| 3 Month: | $15.79 |
| 6 Month: | $16.69 |
| 9 Month: | $17.22 |
| 12 Month: | $17.50 |
CHEESE
For the week. blocks gained 12.75 cents with 24 loads traded. Barrels gained 3.50 cents with 42 loads traded. Dry whey gained 1.75 cents with 2 loads traded. USDA reduced their estimate slightly on the World Agricultural Supply and Demand report today to $1.7593 per pound for 2023, down about a half cent from the December estimate. The estimate for 2024 was reduced 10.50 cents to an average of $1.62. The dry whey price for 2023 increased slightly to 36.18 cents per pound and was increased this year by 3 cents to 43 cents per pound.
BUTTER
For the week, butter increased 1.25 cents with 15 loads traded. Grade A nonfat dry milk increased 1.25 cents with 11 loads traded. USDA reduced the average butter price for 2023 slightly to an average of $2.6170 per pound. They increased their price estimate by 7 cents to $2.6650 per pound for 2024. The nonfat dry milk price was basically left unchanged at $1.1856 for 2023 and increased 1.50 cents for 2024 to an average price of $1.19.
OUTSIDE MARKETS SUMMARY
March corn closed down 10.75 cents per bushel at $4.4700, March soybeans closed down 12.25 cents at $12.2425 and March soybean meal closed down $.10 per ton at $362.10. March Chicago wheat closed down 7.75 cents at $5.9600. February live cattle closed down $0.43 at $171.38. February crude oil is up $0.70 per barrel at $72.72. The Dow Jones Industrial Average is down 118 points at 37,593 with the NASDAQ up 3 points at 14,973.
