MILK
Strong underlying cash supported milk futures Monday, pushing the May Class III contract above $18, where it hasn't been in nearly a month. June closed at the highest price since Nov. 16, 2023.
The market certainly has changed over the past two weeks. USDA released the March Milk Production report today showing milk production in the top 24 states decreased by 0.9% from a year ago. Milk production per cow was 2,115 pounds, down 3 pounds from March 2023. Cow numbers declined by 7,000 head from February. Milk production for all 50 states was down 1% from March 2023. Milk output per cow was unchanged at 2,100 pounds. Cow numbers in the country declined by 7,000 head from February. There were 15 of the top 24 states declined milk production. The largest decline took place in New Mexico with a decline of 15.4% followed by Georgia down 7.4%. The largest increase took place in South Dakota with an increase of 11.2%. California milk production was up 0.7% with Wisconsin up 1% for the month compared to a year ago.
AVERAGE CLASS III PRICES
| 3 Month: | $17.45 |
| 6 Month: | $18.13 |
| 9 Month: | $18.28 |
| 12 Month: | $18.25 |
CHEESE
There were unfilled bids under the closing price but not until 9-11 cents lower. It will be interesting to see whether other buyers will remain aggressive Tuesday or if the activity today was mainly from orders that needed to be filled and made buyers aggressive.
Cheese supply is not tight as manufacturing has been active and inventory slightly above a year ago. The aggressive buying likely was not the result of building inventory but rather the need to fill orders.
BUTTER
The price moved up to $3, the highest price since Nov. 7, 2023. Butter supply is readily available but buyers seem more willing to purchase supply as a hedge against higher prices that may develop as the year progresses. Price may follow a repeat of the past two years but it is increasing early and steadily.
OUTSIDE MARKETS SUMMARY
May corn closed up 6.25 cents per bushel at $4.3975, May soybeans closed up 10.50 cents at $11.61 and July soybean meal closed up $1.60 per ton at $344.80. July Chicago wheat closed up 20.75 cents at $5.8750. June live cattle closed up $2.38 at $178.05. June crude oil is down $0.32 per barrel at $81.90. The Dow Jones Industrial Average is up 254 points at 38,240 with the NASDAQ up 169 points at 15,451.
