MILK
Class III milk futures close the week lower with April, May and June months falling to new contract lows. The decline of American cheese stocks and the discovery of avian flu impacting some dairy herds did nothing to generate buying interest.
Sufficient milk supply and milk production increasing seasonally have buyers of dairy products on the spot market somewhat complacent. USDA released the Agricultural Prices report Thursday, using some of the prices for the calculation of income over feed for the Dairy Margin Coverage program.
The average corn price for February was $4.36 per bushel compared to $4.74 in January and $6.80 per bushel in February 2023. The premium/supreme hay price was $278 per ton compared to $274 in January and $324 a year ago. The all-milk price was $20.60, up $0.50 from January, and was $1 per cwt lower than February 2023. The average soybean meal price has not been released and likely will not be released until Monday morning. This is needed to calculate the income over feed price.
Other prices to make note of are that soybeans were $11.90 per bushel, compared to $12.80 in January and $15.10 a year ago. The alfalfa hay price was $202 per ton, up $2 from January but down from $264 a year ago. The Planting Intentions report Thursday was bullish for corn and a bit bearish for soybeans. The estimate is for 90.1 million acres of corn to be planted this year, a decline of 4.6 million acres. Soybean acres are expected to increase by 2.9 million acres from last year, totaling 86.5 million acres.
AVERAGE CLASS III PRICES
| 3 Month: | $15.95 |
| 6 Month: | $16.66 |
| 9 Month: | $17.25 |
| 12 Month: | $17.46 |
CHEESE
For the week, blocks increased by 2.50 cents with 25 loads traded. Barrels increased by 0.25 cent with 22 loads traded. Dry whey increased by 0.75 cent with one load traded. The markets are closed for Good Friday but will reopen Sunday night. Cheese buyers are not aggressive with price increases, mostly the result of orders needing to be filled or buying on price weakness. Price increases remain short-lived.
BUTTER
For the week, butter increased by 3.25 cents with 16 loads traded. Grade A nonfat dry milk price increased by 1.25 cents with 12 loads traded. Butter price remains choppy but is pushing to the top end of the range it has been in. Steady demand after Easter may push the price above the range even though inventory is increasing.
OUTSIDE MARKETS SUMMARY
May corn closed up 15.25 cents per bushel at $4.4200, May soybeans closed down 1 cent at $11.9150 and May soybean meal closed down $1.30 per ton at $337.70. May Chicago wheat closed up 12.75 cents at $5.6025. June live cattle closed up $1.58 at $180.25. May crude oil is up 1.82 per barrel at $83.17. The Dow Jones Industrial Average is up 47 points at 39,807 with the NASDAQ down 20 points at 16,379.
