MILK:
Traders continue to expect cash prices to remain choppy. Even though cheese prices were higher, nearby futures closed lower with traders anticipating limited upside price potential. Milk production in the Eastern region continues to increase as the spring flush continues. Northeast milk plants report milk receipts are heavy and continue to increase. There is potential that the Northeast region may see some dumping of milk, as was seen last year. The USDA released the March Federal Order class prices today. The Class II price was $20.12 per cwt, down $0.96 from February and $1.00 below a year ago. The Class III price was $18.62, down $1.56 from February, but $2.28 higher than a year earlier. The Class IV price was $18.21, down $1.69 from a year ago and down $1.88 from March 2024. This is the first time the Class IV price has been below Class III since April 2023.
AVERAGE CLASS III PRICES:
| 3 Month: | $17.07 |
| 6 Month: | $17.59 |
| 9 Month: | $17.83 |
| 12 Month: | $17.81 |
CHEESE:
Cheese demand is mixed, with some indicating it has increased over the past few weeks. Others indicate there has been little change in demand from both retail and the food service industry. Cheese variety may have an influence on demand. Cheese production is slowly increasing as milk receipts are increasing at the plant level. Spot milk is more available with prices as low as $4.00 under class.
BUTTER:
The butter price seems to be comfortable at the current level as business is being done with limited price movement.
The cream supply remains abundant, keeping churning active. Some reports indicate cheese is not quite as heavy as it had been. However, the cream supply is far from being tight. Strong milk production keeps supply readily available to manufacturers. Buyers have obtained much of their needs for the Easter season and are purchasing supplies for later demand at the lower prices.
