MILK
It was a strong day for Class III futures with exceptional trading volume in the March contract. There were over 1,055 contracts traded with the price up 61 cents. Trading volume in April totaled 218 contracts and showed a gain of 56 cents. All contracts through December posted double-digit gains.
The main impact on price movement was the 3.25 cents increase of dry whey, moving the price back to its highest level since June 21, 2022. The monthly average soybean meal price was released with December down $23.67 per ton from November at $440.60 per ton. The price was down $22.25 per ton from December 2022.
This puts the income over feed price at $8.44 and a payment of $1.06 per cwt for those who chose the $9.50 price level and have not reached the maximum for milk production. USDA has yet to announce a sign-up for this year.
AVERAGE CLASS III PRICES
| 3 Month: | $17.20 |
| 6 Month: | $17.72 |
| 9 Month: | $17.98 |
| 12 Month: | $18.05 |
CHEESE
The cheese market was a mixed bag of information today. The West indicates international demand has improved as it is being shipped out of port. Demand for cheese varieties other than cheddar has improved domestically. Cheese production is strong but inventory is not growing. Generally, cheese is available for demand. Spot milk prices are running near class, which is good for this time of year. The strong dry whey price received the attention of traders and ignited a spark in the market.
BUTTER
Butter price has seen some weakness over the past two days but is not expected to decline much. Greater support seems to be developing in the market, which may keep the price stronger than it was this time last year.
OUTSIDE MARKETS SUMMARY
March corn closed down 1 cent per bushel at $4.4725. March soybeans closed down 19 cents at $12.0325 and March soybean meal closed down $6.60 per ton at $361.70. March Chicago wheat closed up 6.25 cents at $6.0150. April live cattle closed up $2.48 at $183.18. March crude oil is down $1.87 per barrel at $73.98. The Dow Jones Industrial Average is up 370 points at 38,520 with the NASDAQ up 198 points at 156,362.
