March dairy product output up; prices react

USDA’s monthly Dairy Products report was released May 2. March 2012 production (compared to March 2011) and year-to-date (YTD) production included:

• Total cheese output (excluding cottage cheese) was 946.3 million lbs., 3.7% more than March 2011. 2012 YTD production, at 2.71 billion lbs., is up 4.4% from 2011.

• Italian type cheese production totaled 405.4 million lbs., 1.4% more than March 2011. YTD production, at 1.17 billion lbs., is up 2.9%.

• American type cheese production totaled 382.3 million lbs., up 4.1%. YTD production, at 1.10 billion lbs., is up 4.1%.

• Cheddar cheese production totaled 280.6 million lbs., up 5.2%. YTD production, at 816 million lbs., is up 4.1%.

• Butter production was 176.0 million lbs., 6.4% more than March 2011. YTD production, at 526 million lbs., is up 9.0%.

• Dry milk powders: Nonfat dry milk, human – 188.6 million lbs., up 49.9%. YTD production, at 54.6 million lbs., is up 47.5%. Skim milk powders – 11.9 million lbs., down 71.5%. YTD production, at 69.8 million lbs., is down 40.8%.

• Whey products: Dry whey, total – 90.2 million lbs., down 4.3%. YTD production, at 275.7 million lbs., is up 3.4%.

(Due to Leap Day, YTD production in 2012 includes one extra day).

MARKETS: Barrels fall; Class III futures sharply lower

Today's market closing prices:

Cheddar barrels: down 2.5¢, to $1.47/lb.

Cheddar blocks: unchanged, at $1.5350/lb.

Butter: down 1.0¢, to $1.3450/lb.

Extra Grade nonfat dry milk: unchanged, at $1.1075/lb.

Grade A nonfat dry milk: unchanged, at $1.1475/lb.

Class III milk: -9¢ to -64¢ lower through April 2013. Based on current closing prices, the 2012 average is $15.36/cwt.; 2013 average is $15.72/cwt.