MILK:
Class III milk futures showed substantial declines for the week, pressured by the uncertainty of demand due to the sweeping implementation of tariffs. Class III futures suffered losses despite spot cheese prices increasing for the week. Traders did not care what the underlying cash did but were more focused on the impact tariffs might have on demand. It will be difficult for the current bearish attitude to change even during periods of stronger cash prices. Class IV futures were lower but did not suffer the losses of Class III contracts. This was somewhat surprising as both butter and nonfat dry milk spot prices declined. The Dow Jones Industrial Average was under substantial pressure for the second day as a result of the tariffs. It fell 2,231 points today and is down 10% over the past two days. This has rattled the equity and commodity markets, fueling fears of a recession.
AVERAGE CLASS III PRICES:
| 3 Month: | $16.83 |
| 6 Month: | $17.32 |
| 9 Month: | $17.53 |
| 12 Month: | $17.57 |
CHEESE:
For the week, blocks increased 0.50 cent with 47 loads traded. The weekly average price is $1.6455. Barrels increased 2.50 cents with 16 loads traded. The weekly average price is $1.6605. Dry whey decreased 1.00 cents with six loads traded. The weekly average price is 49.35 cents. American cheese production was 1.3% below February 2024, totaling 441 million pounds. This is understandable as there was one less day than a year ago. Italian-type cheese production totaled 474 million pounds, down 0.5% from a year ago. Total cheese output reached 1.11 billion pounds, down 2.2% from February 2024. Dry whey production totaled 60.1 million pounds, down 16.7%. Lactose output totaled 83.9 million pounds, down 4.2%. Whey protein concentrate production declined 6.8% to 30.8 million pounds.
BUTTER:
For the week, butter decreased 5.50 cents with 28 loads traded. The weekly average price is $2.3290. Nonfat dry milk decreased 0.50 cent with 12 loads traded. The weekly average price is $1.1665. Butter production was strong in February, totaling 203 million pounds. This was 2.6% above February 2024. Churns were actively producing more butter even though there was one less day in the month, Nonfat dry milk production was 0.3% lower at 147 million pounds. Skim milk powder production totaled 30.8 million pounds, down 15.1%. Ice cream production was 3.0% lower than at 55.6 million pounds.
OUTSIDE MARKETS SUMMARY:
May corn closed up 2.75 cents per bushel at $4.6025, May soybeans closed down 34.50 cents at $9.7700 and May soybean meal closed down $4.90 per ton at $283.10. May Chicago wheat closed down 7.00 cents at $5.2900. June live cattle closed down $6.50 at $198.20. May crude oil is down $4.62 per barrel at $62.33. The Dow Jones Industrial Average is down 2,231 points at 38,315 with the NASDAQ down 963 points at 15,588.
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