MILK:
Milk futures declined for the week, but not as much as should have been seen according to the drop in the spot cheese and butter prices. The reason for this is that futures prices did not increase as much as they should have when prices increased. Traders remained cautious when spot prices increased, as it was expected that there would be limited potential. The liquidation was not as great with the decline of prices due to limited exuberance on the way up, leaving less to liquidate on the way down. Fluid milk sales in February were 2.2% below February 2024. Whole milk sales declined 1.3%; flavored whole milk gained 2.3%; reduced fat milk declined 5.3%; low fat milk declined 12.8%; fat-free milk declined 6.7%; flavored fat-reduced milk declined 8.6%; and buttermilk sales declined 7.5%. Organic whole milk sales gained 6.9%; organic flavored whole milk declined 26.3%; organic reduced-fat milk increased 5.5%; organic low-fat milk declined 19.0%; organic fat-free milk declined 9.5%; and organic flavored fat-reduced milk sales declined 6.7%.
AVERAGE CLASS III PRICES:
| 3 Month: | $17.60 |
| 6 Month: | $17.79 |
| 9 Month: | $17.91 |
| 12 Month: | $17.92 |
CHEESE:
For the week, blocks declined by 13.50 cents with 27 loads traded. The weekly average price was $1.7420. Barrels fell 13.50 cents with 21 loads traded. The weekly average price was $1.7595. Dry whey gained 2.25 cents with seven loads traded. The weekly average price was 49.40 cents. Once buyers' needs were met, prices fell as quickly as they had increased. It may be difficult for cheese prices to increase very much over the next month as the spring flush continues.
BUTTER:
For the week, butter declined 5.75 cents with nine loads traded. The weekly average price was $2.3145. Grade A nonfat dry milk gained 1.50 cents with 17 loads traded. The weekly average price was $1.1850. The butter price fell below the trading range it has been in for the past two months, with the price falling to the lowest level since March 4. Buyers have been able to purchase for immediate needs as well as buy for later demand without chasing the market higher. This may limit the upside price potential later this year.
OUTSIDE MARKETS SUMMARY:
July corn closed up 1.50 cents per bushel at $4.8550, July soybeans closed down 2.75 cents at $10.5925 and July soybean meal closed up $1.80 per ton at $298.50. July Chicago wheat closed up 0.50 cent at $5.4500. June live cattle closed up $0.25 at $208.25. June crude oil is up $0.38 per barrel at $63.17. The Dow Jones Industrial Average is up 20 points at 40,114, with the NASDAQ up 217 points at 17,383.
