Milk Production for March was released by the USDA on Wednesday. Following a lackluster CME spot trade, Class III struggled to move higher.
The USDA shows the U.S. dairy herd grew by 8,000 head in March to 9.47 Million cows. Plus they added a 2,000 cow adjustment to February. Our herd is up 77,000 cows from 2020. The average production per cow at 2,086lb, up 20 lbs per cow from 2020 levels. Total milk production was up 2% from 2020 levels.
CME Spot trade saw Butter move another half a cent lower to $1.79 ¼, Cheddar Blocks fell half a penny to 1.79 ½, Barrels were unchanged at 1.80 ½. Our block/barrel spread has inverted to a penny in favor of Barrels.
Grade A Non Fat Dry milk was our lone market to move higher. Gaining a penny to $1.24/lb. Dry whey fell 2 cents after printing near record highs on Tuesday. Slipping to $0.68 1/4/lb.
Class III milk was mixed at the close. April gained 2 to 17.70, May fell 16 to 19.16, and June fell 11 cents to 19.19/cwt. The balance of the year was unchanged to 16 lower. Averaging at 18.86/cwt.
Class IV milk had April and May unchanged at 15.52 and 16.09/cwt and June jumped 7 cents higher to 16.53/cwt.
Grain markets continued to rocket higher. Corn up 19 to 6.25 1/2, Soybeans up 25 ¼ to 1497 ¼, with Soybean meal only gaining $1.90 to 412.30/ton.
