GENERAL OVERVIEW:
Class III futures were mostly higher while Class IV futures posted double-digit losses in all traded contracts. Mississippi made the first move to ban the manufacture and sale of lab-grown dairy products. The February income over feed prices is $8.46.
MILK:
The state of Mississippi was the first to step out and prohibit the manufacture and sale of lab-grown dairy products. The proposed legislation would classify lab-grown dairy separately from conventional dairy products and make it illegal to manufacture, market or sell the products in the state. Previously, Mississippi banned lab-grown meat along with Florida and Alabama. This is a controversial subject and one that will be a topic of many discussions. The February soybean meal price was the final price needed to calculate income over feed for the Dairy Margin Coverage program. The average price was $312.38 per ton, up $13.13 from January. This puts the income over feed at $8.46. Class III futures were mostly higher, riding on the strength of cheese prices. Class IV futures posted double-digit losses in those contracts that were traded.
AVERAGE CLASS III PRICES:
| 3 Month: | $15.24 |
| 6 Month: | $15.82 |
| 9 Month: | $16.37 |
| 12 Month: | $16.67 |
CHEESE:
The bounce in cheese prices provided the confidence for traders to support milk futures. However, the upside price potential may be limited as the spring flush increases the milk supply for manufacturing.
BUTTER:
The decline of the butter price was surprising, as demand is good and buyers are readily purchasing what is being offered in the spot market. The difference is that sellers are aggressively moving butter even at lower prices. As long as sufficient butter is available to the market, buyers see little reason to be aggressive. Cream supplies are lower due to an increase in ice cream production, but that may not be sufficient to tighten supply.
OUTSIDE MARKETS SUMMARY:
May corn closed up 2.00 cents per bushel at $4.5775, May soybeans closed up 11.25 cents at $11.7100, and May soybean meal closed up $1.50 per ton at $316.40. May Chicago wheat closed up 9.25 cents at $6.1625. June live cattle closed up $3.08 at $243.28. May crude oil is down $1.27 per barrel at $101.61. The Dow Jones Industrial Average is up 1,125 points at 46,342, with the NASDAQ up 796 points at 21,591.
