During the week, Class III futures advance somewhat in nearby months, but more in deferred contracts. Underlying cash prices continued to chop up and down but did take back some of the previous week's losses. Milk production is increasing as the spring flush is evident in most areas. More milk is finding its way to manufacturing. January fluid milk sales decreased 0.5% from January 2024. Conventional whole milk sales increased 1.4%; flavored whole milk decreased 1.9%; reduced fat milk decreased 3.6%; low fat milk declined 5.4%; fat-free skim milk decreased 5.4%; flavored fat-reduced milk sales decreased 3.5%; buttermilk increased 0.9%, with other fluid milk products up 14.6%. Organic whole milk sales increased 10.3%; organic flavored whole milk decreased 10.5%; organic reduced fat milk increased 8.1%; organic low fat milk fell 17.9%; organic fat-free milk decreased 4.5%; organic flavored fat-reduced milk jumped 30.5%, with other organic fluid milk sales down 17.6%. USDA will release the February Agricultural Prices report on Monday, providing prices used in calculating the income over feed price for the Dairy Margin Coverage program. The Quarterly Grain Stocks and Prospective Planting report will also be released.
AVERAGE CLASS III PRICES:| 3 Month: | $17.75 |
| 6 Month: | $17.79 |
| 9 Month: | $18.01 |
| 12 Month: | $17.98 |
For the week, blocks increased 3.25 cents with 48 loads traded. That is the highest weekly volume we have seen for quite some time. The weekly average price was $1.6345. Barrels increased 8.50 cents with 21 loads traded. The weekly average price was $1.6330. Dry whey remained unchanged at 50.00 cents with three loads traded. The weekly average was 50.10 cents. Cheese prices increased but were choppy. It is difficult to say whether prices have found a bottom or whether further weakness is possible if milk increases significantly, and demand does not keep pace.
BUTTER:For the week, butter increased 4.75 cents with 64 loads traded. The weekly average price was $2.3385. Grade A nonfat dry milk increased 1.75 cents with 18 loads traded. The weekly average price was $1.1510. Growing inventory will keep the upside price potential limited.
OUTSIDE MARKETS SUMMARY:May corn closed up 3.25 cents per bushel at $4.5325, May soybeans closed up 6.25 cents at $10.2300 and May soybean meal closed down $1.00 per ton at $293.50. May Chicago wheat closed down 3.75 cents at $5.2825. June live cattle closed down $0.95 at $204.85. May crude oil is down $0.78 per barrel at $69.14. The Dow Jones Industrial Average is down 716 points at 41,584 with the NASDAQ down 481 points at 17,323.
