Friday Closing Dairy Market Update - February Milk Production Up 0.8% After Adjusting for Leap Day

MILK:

Milk output continues to improve as spring flush has begun or is beginning depending on the area of the county. Based on the February Milk Production report, production may exceed last year during the spring flush. February milk production in the top 24 states totaled 17.0 billion pounds. When adjusted for leap day, production was 0.9% above a year ago. Milk production per cow totaled 1,895 pounds and 66 pounds below February 2024 before an adjustment was made for the one extra day last year. The number of cows was a surprise with an increase of 13,000 head from January. No adjustment needs to be made to this number, it just moves cow numbers in the top 24 states to 8.96 million head. Milk production in the U.S. totaled 17.7 billion pounds from February 2024. When adjusted for leap day, production was 0.8% higher. Milk production per cow totaled 1,885 pounds. The number of dairy cows on farms totaled 9.41 million head, 15,000 more than January. This is a bearish report.

AVERAGE CLASS III PRICES:

3 Month:	$17.54
6 Month:	$17.64
9 Month:	$17.93
12 Month:	$17.89

CHEESE:

For the week, blocks fell 9 cents with 23 loads traded. The weekly average price was $1.6095. Barrels fell 14 cents with 11 loads traded. The weekly average price was $1.5750. Dry whey increased 5.0 cents with five loads traded. The weekly average price was 47.20 cents. Cheese prices will remain under pressure due to lower demand, but also higher milk production as seen in February assuring a sufficient milk supply.

BUTTER:

For the week, butter declined by 4 cents with 24 loads traded. The weekly average price was $2.2980. Grade A nonfat dry milk declined by a penny with 11 loads traded. The weekly average price was $1.1520. USDA will release the February Cold Storage report on Tuesday, which is expected to show an increase in butter inventory.

OUTSIDE MARKETS SUMMARY:

May corn closed down 4.75 cents per bushel at $4.6425, May soybeans closed down 3.25 cents at $10.0975 and May soybean meal closed up $3.20 per ton at $300.30. May Chicago wheat closed up 1 cent at $5.5825. June live cattle closed down $2.25 at $202.78. May crude oil is up $0.21 per barrel at $68.28. The Dow Jones Industrial Average is up 32 points at 41,985 with the NASDAQ up 92 points at 17,784.