Tuesday Closing Dairy Market Update - Butter and Cheese Output Increase in March

MILK:

Class III and Class IV milk futures showed strong gains. Higher prices in all the spot market categories increased buying interests. Traders may be cautious, but the increases in cash warranted market price strength. The Global Dairy Trade auction trade-weighted average increased 4.6% from the previous event to an average price of $4,516 per metric ton with 16,714 metric tons sold. The anhydrous milk fat price gained 5.4% to $7,212 per metric ton, or $3.27 per pound. Butter gained 3.8% to $7,992 per metric ton, or $3.63 per pound. Buttermilk powder gained 6.2% to $3,060 per metric ton, or $1.39 per pound. Cheddar cheese jumped 12.0% to $5,519 per metric ton, or $2.50 per pound. Lactose jumped 16.8% to $1.611 per metric ton, or $0.73 per pound. Skim milk powder gained 0.5% to $2,828 per metric ton, or $1.28 per pound. Whole milk powder gained 6.2% to $4,374 per metric ton, or $1.98 per pound. The only category showing a decline was mozzarella cheese, down 0.3% to $4,759 per metric ton, or $2.16 per pound.

AVERAGE CLASS III PRICES:

3 Month:	$18.69
6 Month:	$18.78
9 Month:	$18.61
12 Month:	$18.45

CHEESE:

According to the Dairy Products report released Tuesday, American cheese production in March totaled 500 million pounds, up 4.6% from March 2024. Italian-type cheese production totaled 518 million pounds, down 0.2% from a year ago. Total cheese output reached 1.23 billion pounds, up 1.4% from March 2024. Dry whey production totaled 70.0 million pounds, down 12.4%. Whey protein concentrate declined 8.5% from March 2024 to 40.7 million pounds.

BUTTER:

Butter production in March totaled 229 million pounds, up 8.6% above March 2024. Nonfat dry milk output totaled 168 million pounds, down 9.1%. Skim milk powder output declined 11.9%, totaling 34.0 million pounds. Regular ice cream production totaled 60.4 million gallons, down 7.9%.

OUTSIDE MARKETS SUMMARY:

July corn closed up 1.25 cents per bushel at $4.5550, July soybeans closed down 4.25 cents at $10.4125 and July soybean meal closed down $2.50 per ton at $293. July Chicago wheat closed up 4.75 cents at $5.3600. June live cattle closed up $0.03 at $213.68. June crude oil is up 1.83 per barrel at $58.96. The Dow Jones Industrial Average is down 390 points at 40,829, with the NASDAQ down 155 points at 17,690.