MILK:
Numerous Class IV contracts closed with double-digit losses. Some nearby contracts have fallen to the lowest level in about a year. The weakness of nonfat dry milk has been the anchor on the market, and the price has not yet found a bottom. Class III futures have not been able to find support as the weakness of dry whey keeps pressure on the market. The January Milk Production report indicated nine of the top 24 states showed a decline in milk production from a year ago. More states showed production increases than in December. California showed the largest decrease of 5.7%, followed by Arizona, down 4.1%. Virginia declined 3.3%; Washington declined 2.9%; Illinois declined 2.7%; New Mexico declined 1.2%; Florida declined 1.1%; Wisconsin declined 0.6%; Minnesota declined 0.2%. Bird flu continues to impact California, but the loss is becoming less as the months progress. The states with the greatest production increases have been South Dakota and Texas, with a gain of 6.5% each. Idaho showed a production gain of 6.4% from a year earlier. Kansas was up 4.3% and Colorado was up 3.6%. Other states that showed gains were 2.0% or less.
AVERAGE CLASS III PRICES:
| 3 Month: | $19.25 |
| 6 Month: | $18.86 |
| 9 Month: | $18.80 |
| 12 Month: | $18.71 |
CHEESE:
Cheese prices continue to move in a range. Buyers are not anxious about purchasing cheese for future demand. This time of year is generally slower for demand, but this year buyers are extremely cautious as they are uncertain about demand for the foreseeable future. The commercial disappearance of dairy products is running about 0.55% below a year ago. That may not change anytime soon as the consumer price index continues to increase due to higher food costs, leaving less disposable income.
BUTTER:
The butter price moved to a new low for the year and may now move to and below the lowest price in 2023. Buyers could be more aggressive at the lower price, but each time the price bounced, it resulted in the price moving to a new low. Abundant cream supplies keep butter production strong and supply readily available.
OUTSIDE MARKETS SUMMARY:
March corn closed down 8.75 cents per bushel at $4.8250, March soybeans closed down 10.50 cents at $10.2900 and May soybean meal closed down $3.00 per ton at $300.90. May Chicago wheat closed down 10.50 cents at $5.9350. April live cattle closed up $1.15 at $195.10. April crude oil is up $0.45 per barrel at $70.85. The Dow Jones Industrial Average is up 33 points at 43,461 with the NASDAQ is down 237 points at 19,287.
