GENERAL OVERVIEW:
Milk futures were higher in light trading activity following the increase in spot prices. The USDA released the February Milk Production report showing production up 2.0% from February 2025. Cow numbers jumped by 15,000 head from January.
MILK:
Milk futures were higher in response to the increase in all categories in the spot markets except barrels. Trading volume was light in Class III futures. Traders looked ahead to the February Milk Production report and limited activity. The February report showed production in the top 24 states, up 3.1%, totaling 17.6 billion pounds. January milk production was revised 0.2% higher. Production per cow totaled 1,912 pounds and was 13 pounds higher than a year ago. Cow numbers were 13,000 head more than in January. Milk production in the U.S. was 2.9% above a year ago. Milk production per cow totaled 1,899 pounds, 12 pounds above February 2025. Cow numbers increased by 15.000 head from the previous month. The nation's dairy herd totaled 9.62 million head, 211,000 more than in February 2025. This is a negative report.
AVERAGE CLASS III PRICES:
| 3 Month: | $17.08 |
| 6 Month: | $17.69 |
| 9 Month: | $17.97 |
| 12 Month: | $17.86 |
CHEESE:
For the week. blocks jumped 13.25 cents with seven loads traded. The weekly average price is $1.6160. The barrel price increased 4.00 cents with no loads traded. The weekly average price is $1.5560. Dry whey remained unchanged at 66.00 cents with four loads traded. The weekly average price is 65.20 cents. The block price moved to the highest price since Nov. 3, 2025, keeping the uptrend intact.
BUTTER:
For the week, butter declined by 4.75 cents with 70 loads traded. The weekly average price is $1.8185. Grade A nonfat dry milk jumped 10.50 cents with 34 loads traded. The weekly average price is $1.8260. I do not believe the Grade A nonfat dry milk price has ever moved higher than the butter price as it did this week. The price is back to the highest level it has been since June 13, 2022.
OUTSIDE MARKETS SUMMARY:
May corn closed down 4.25 cents per bushel at $4.6550, May soybeans closed down 7.25 cents at $11.6125 and May soybean meal closed down $4.50 per ton at $328.00. May Chicago wheat closed down 12.75 cents at $5.9525. June live cattle closed up $1.73 at $233.43. May crude oil is up $2.26 per barrel at $97.81. The Dow Jones Industrial Average is down 444 points at 45,577, with the NASDAQ down 443 points at 21,648.
