MILK:
It was good to finally see gains in milk futures. The gains were not very great as buyers remained cautious and did not turn aggressive due to the strength of spot prices. Price increases have been short-lived. Traders are not certain these prices will hold. The USDA released the World Agricultural Supply and Demand Estimates report, which provides estimates for dairy production and prices for the year. The milk production estimate for this year was lowered from the previous month by 700 million pounds to 226.2 billion pounds. If this comes to fruition, it would be only 300 million pounds higher than 2024. USDA lowered their estimate for average Class III milk price to $17.95. down $1.15 per cwt from the February estimate. The Class IV price was reduced $0.90 per cwt to an average of $18.80. The All-milk price was reduced $1.00 per cwt to an average of $21.60. The report was neutral for corn and soybeans but slightly bearish for wheat.
AVERAGE CLASS III PRICES:
| 3 Month: | $17.92 |
| 6 Month: | $17.92 |
| 9 Month: | $18.09 |
| 12 Month: | $18.08 |
CHEESE:
It was refreshing to see both blocks and barrels higher today. This does not indicate a change in trend but may indicate buyers think prices are low enough to step up to purchase supply. However, they will continue to exercise caution, and price increases have been short-lived. The USDA reduced their estimate for the average cheese price by 7 cents per pound from the February estimate to $1.81. This would be about 5 cents per pound lower than 2024. The average dry whey price was reduced 8 cents per pound to 52.50 cents.
BUTTER:
The butter price was reduced 13 cents per pound to an average of $2.5150. This would be down 37 cents from 2024. The nonfat dry milk price was reduced by 4 cents per pound, averaging $1.2550. This would be a penny higher than a year ago.
OUTSIDE MARKETS SUMMARY:
May corn closed down 1.75 cents per bushel at $4.7025, May soybeans closed down 2.75 cents at $10.1125 and May soybean meal closed down $.50 per ton at $301.80. May Chicago wheat closed down 5.75 cents at $5.5675. April live cattle closed down $1.03 at $199.55. April crude oil is up $0.53 per barrel at $66.56. The Dow Jones Industrial Average is down 478 points at 41,433 with the NASDAQ down 33 points at 17,436.
