MILK:
Traders remain cautious over the upside price potential for cheese. The increase in cheese prices and unfilled bids at the close of spot trading did not generate much trading interest. It will take much more fundamental support to turn traders bullish on the market. The average soybean meal price for February was $304.78 per ton. This was $12.19 per ton lower than January and was $58.85 per ton below February 2024. The income over feed price for February was $13.12 per cwt. The price in February 2024 was $9.44. The Global Dairy Trade Auction showed the trade-weighted average gaining 1.1% from the previous event. There were 17,643 metric tons sold at an average price of $4,250 per metric ton. Anhydrous milk fat increased 2.3% to $6,705 per metric ton or $3.04 per pound. Butter decreased 1.2% to $7,602 per metric ton or $3.45 per pound. Buttermilk powder decreased 5.6% to $2,807 per metric ton or $1.27 per pound. Cheddar cheese increased 1.7% to $5,018 per metric ton or $2.28 per pound. Lactose decreased 2.6% to $1,132 per metric ton or $0.51 per pound. Skim milk powder increased 5.9% to $2,876 per metric ton or $1.30 per pound. Whole milk powder decreased 0.1% to $4,062 per metric or $1.84 per pound. Mozzarella decreased 4.0% to $4,517 per metric ton or $2.05 per pound.
AVERAGE CLASS III PRICES:
| 3 Month: | $17.21 |
| 6 Month: | $17.70 |
| 9 Month: | $17.91 |
| 12 Month: | $17.87 |
CHEESE:
The number of unfilled bids remaining at the close of spot trading and the number of loads traded today suggest spot cheese prices could be higher on Wednesday. However, there is no indication of a change in trend and little indication of continued strength. The volume of cheese sold today indicates manufacturers want to continually move cheese to the market rather than have it build up at the plant level. They feel holding on to cheese in hopes of higher prices may not be beneficial.
BUTTER:
The butter price is expected to remain sideways for a while. Sellers will offer supply to the spot market on price increases or as they need to minimize inventory building. The world butter price remains over $1.00 above the U.S. price and should keep international demand strong despite potential tariffs.
OUTSIDE MARKETS SUMMARY:
May corn closed up 4.50 cents per bushel at $4.6175, May soybeans closed up 19.50 cents at $10.3425 and May soybean meal closed down $.40 per ton at $292.30. May Chicago wheat closed up 3.50 cents at $5.4050. June live cattle closed up $1.78 at $205.43. May crude oil is down $0.32 per barrel at $71.16. The Dow Jones Industrial Average is down 12 points at 41,990 with the NASDAQ up 151 points at 17,450.
