GENERAL OVERVIEW:
Milk futures were higher due to the strength in block cheese and nonfat dry milk. The April and May Class IV contracts are now above $20.00. January exports increased 12%.
MILK:
Milk futures continued the strength of Friday, supported by higher block cheese and nonfat dry milk prices. Butter has a minor influence, but the real support came from Grade A nonfat, gaining 3.00 cents and moving to the highest price since July 1, 2022. Class IV futures have recovered all of the previous losses, with the April and May contracts above $20.00. Class III futures are expected to continue to chop around in a sideways pattern, moving through the spring flush. January dairy exports on a milk solids basis were 12% higher than January 2025. The value of exports increased by 4.0% to $740 million. There may be some challenges facing dairy exports as the conflict in Iran and elevated fuel prices may impact international demand.
AVERAGE CLASS III PRICES:
| 3 Month: | $16.82 |
| 6 Month: | $17.53 |
| 9 Month: | $17.86 |
| 12 Month: | $17.77 |
CHEESE:
January cheese exports totaled 51,688 metric tons, up 10.7% from January 2025. Lactose exports totaled 32,986 metric tons, an increase of 3.6% from a year earlier. Whey exports totaled 45,048 metric tons, up 7.4% from a year ago. Whey protein concentrate +80 exports totaled 5,320 metric tons, down 36.1% from January 2025.
BUTTER:
Butterfat exports totaled 13,776 metric tons, up 94.0% above January 2025. Strong exports are expected to continue as the U.S. price remains attractive to international demand. Nonfat dry milk/skim milk powder exports totaled 55,767 metric tons, up 19.2% from a year ago. Whole milk powder exports were up 161.5% over January, totaling 3, 242 metric tons.
OUTSIDE MARKETS SUMMARY:
May corn closed down 13.25 cents per bushel at $4.5400, May soybeans closed down 70.00 cents at $11.5525 and May soybean meal closed down $10.50 per ton at $312.20. May Chicago wheat closed down 16.50 cents at $5.9725. April live cattle closed up $2.35 at $233.25. April crude oil is down $4.39 per barrel at $94.32. The Dow Jones Industrial Average is up 388 points at 46,946, with the NASDAQ is up 269 points at 22,374.
