MILK
Class III milk futures have made an incredible higher run over the past months, pushing prices back to where they were in February. Some contracts are back to the highest level since October 2023. This has been somewhat surprising as there has been much uncertainty over the impact of the avian flu virus. Trade may have concerns over milk supply as the year progresses rather than whether consumer demand might be affected.
USDA released the March Agricultural Prices report today. The average corn price for March was $4.36, unchanged from February. This compares to a corn price of $6.67 in March 2023. The premium/supreme hay price was $271 per ton in March, down $7 per ton from February compared to $314 per ton a year ago. The all-milk price was $20.70 per cwt, an increase of $0.10 from February and down $0.30 from a year ago. The average soybean meal price is unknown and will be released by the FSA usually the following morning. We will not know the income over feed prices used for the Dairy Margin Coverage program until then.
Some other interesting prices are the average alfalfa hay price for March was $195 per ton, down $5 per ton from February. This compares to $266 per ton a year ago. The soybean price was $11.80 in March, down $0.10 per bushel from February and down $3 per bushel from March 2023.
AVERAGE CLASS III PRICES
| 3 Month: | $17.50 |
| 6 Month: | $18.22 |
| 9 Month: | $18.32 |
| 12 Month: | $18.26 |
CHEESE
The barrel price likely moved sharply higher due to the need for a buyer to purchase a load to fill orders at whatever cost. If this were the case, Class III futures may not hold at the current level as buyers may not see the need to be that aggressive. That is a large jump when supply is sufficient for demand.
BUTTER
Butter price is supported, but buyers do not feel the need to become aggressive. There is sufficient supply for demand with extra production being frozen in bulk and put into storage. Price seems comfortable at the current level with stronger prices anticipated as the year progresses.
OUTSIDE MARKETS SUMMARY
July corn closed down 2.50 cents per bushel at $4.4675, July soybeans closed down 19 cents at $11.63 and July soybean meal closed down $2.40 per ton at $351.90. July Chicago wheat closed down 5.25 cents at $6.0325. June live cattle closed down $2.18 at $174.98. June crude oil is down $0.70 per barrel at $81.93. The Dow Jones Industrial Average is down 570 points at 37,816 with the NASDAQ down 325 points at 15,658.
