Markets Start The Week Softer
Much softness was shown in the Class III milk market to kick off the week on Monday.
Futures prices were down double digits in the April through December 2017 timeframe. July led the way as it was down 28₵. April and May were down 15₵ and represented the lowest decline. The softer prices in 2017 spilled over into 2018 as well. First quarter 2018 prices declined 13₵-20₵, while second quarter prices didn’t trade. The second half of 2018 also dropped with prices off 10₵-12₵ in the third quarter. Fourth quarter prices were down 3₵-6₵.
Class IV markets were quiet and only saw October trade down 6₵ at $15.54 per CWT.
Product markets saw little change with butter and Grade A nonfat dry milk seeing no change in price. While blocks were up a quarter cent and barrels dropped a half cent.
Also on Monday the USDA released its February milk production report. Milk production in February totaled 16.7 billion lbs. down 1.2% from a year ago. However, 2016 was a Leap Year with an extra day of production When adjusting for the Leap Year, February 2017 production came in 2.3% higher than 2016. Cow numbers also grew by 4,000 since January and 56,000 more than last February.