MILK
Futures for both classes of milk closed mixed. Class III futures trimmed some of the losses realized during and shortly after spot trading as traders realized the gain of dry whey did not leave the market in as bearish of a position as initially the weakness of cheese would have suggested.
The World Agricultural Supply and Demand (WASDE) report released today was positive. USDA reduced its estimate of milk production by 100 million pounds to an estimate of 228.2 billion pounds. This was not a large reduction in production but it did have an impact on the price estimates for the year. Beginning stocks and a fat basis were reduced by 600 million pounds to 13.8 billion pounds with total supply down 900 million pounds at 248.3 billion pounds. Exports on a fat basis increased by 200 million pounds to 11.7 billion pounds. On a skim-solids basis, beginning stocks were reduced by 700 million pounds to 9.9 billion pounds. The total supply was reduced by 800 million pounds to a total of 243.5 billion pounds. Exports were reduced by 1.3 billion pounds, totaling 51.9 billion pounds. The average Class III price was raised by $1 to $17.10 per cwt. The Class IV price was raised by $0.85 to an average of $20.20 per cwt. The all-milk price was raised by $0.95 to an average of $20.95 per cwt.
AVERAGE CLASS III PRICES
| 3 Month: | $16.93 |
| 6 Month: | $17.53 |
| 9 Month: | $17.88 |
| 12 Month: | $17.98 |
CHEESE
USDA became more friendly this month for cheese and dry whey prices. It raised the cheese price by 7 cents from the January estimate to an average of $1.69 per pound. This is bringing it closer to $1,7493, the average price for 2023. It raised the dry whey price by 5 cents to an average of 48 cents per pound, about 12 cents above the average price of 2023.
BUTTER
The average butter price for the year was raised by 10.50 cents from January to an average of $2.77, about 15 cents per pound above the average in 2023. The nonfat dry milk price was raised 4.50 cents from the January estimate to an average of $1.2350 per pound. This would be about 5 cents above the average for 2023.
OUTSIDE MARKETS SUMMARY
March corn closed down 1 cent per bushel at $4.3325, March soybeans closed up 4.50 cents at $11.9350 and March soybean meal closed down $4.10 per ton at $347.10. March Chicago wheat closed down 13.50 cents at $5.8850. April live cattle closed up $1.78 at $186.58. March crude oil is up $2.66 per barrel at $76.52. The Dow Jones Industrial Average is up 49 points at 38,726 while the NASDAQ is up 37 points at 15,794.
