MILK
It was a volatile week for Class III futures, but prices at the end of this week were not much higher than at the end of last week. This is surprising as butter and cheese prices were higher for the week. Futures likely would have been higher had it not been for the strong move higher last week which had much of the move this week already factored in. Fluid milk sales in February were up 2.5% from February 2023. One reason sales were higher was due to one extra day this year than a year ago. Sales of Conventional milk were up 2.1%. Whole milk increased by 4.8%; flavored whole milk jumped by 26.0%; reduced-fat milk declined by 2.9%; low-fat milk increased by 8.0%; fat-free skim milk declined by 11.7%; flavored fat-reduced milk increased by 0.5%; buttermilk sales increased 4.0% with other fluid milk product sales up 14.2%. Sales of organic milk increased by 7.8%. Organic whole milk increased by 12.9%; organic flavored whole milk decreased by 0.8%; organic reduced-fat milk sales increased by 8.3%; organic low-fat milk decreased by 3.6%; organic fat-free milk fell by 10.6%; Organic flavored fat-reduced milk fell by 14.3% with other organic milk product sales increasing 215.2%.
AVERAGE CLASS III PRICES
| 3 Month: | $17.19 |
| 6 Month: | $17.87 |
| 9 Month: | $18.07 |
| 12 Month: | $18.04 |
CHEESE
For the week, blocks increased by 7 cents with three loads traded. Barrels increased 11 cents with nine loads traded. The dry whey price increased a penny with seven loads traded. This did not generate much higher milk futures prices than the close last week as the gains had already been factored into the market. The movement of underlying cash generated quite a bit of volatility but no solid gains for the week
BUTTER
For the week, butter increased by 5 cents with 35 loads traded. grade A nonfat dry milk price slipped a penny with 12 loads traded. Buyers were active with plenty of sellers willing to move supplies. This activity indicates buyers and sellers are comfortable at the current price and willing to accomplish business. Supply is ample for demand, but buyers are increasing ownership as a hedge against potential higher prices as the year progresses.
OUTSIDE MARKETS SUMMARY
July corn closed down 2.00 cents per bushel at $4.5000, July soybeans closed down 2.50 cents at $11.7725 and July soybean meal closed down $2.90 per ton at $344.70. July Chicago wheat closed up 1.75 cents at $6.2225. June live cattle closed up $0.78 at $178.58. June crude oil is up $0.28 per barrel at $83.85. The Dow Jones Industrial Average is up 154 points at 38,240 with the NASDAQ up 316 points at 15,928.
