The dairy market remains wary about the spring flush and the destination for that volume of milk. In the Midwest, a lot of that milk supply ends up in a cheese vat. “The good news is the consumer has been relatively resilient,” said Mike North, principal, Ever.Ag. “Cheese production has been very elevated, but the buildup of inventory has not followed its seasonal norm; we’re actually keeping the inventory static or even depleting it a little bit depending on what category you’re looking at.” Nearby Class III prices have been in the $18 per hundredweight range, while deferred contracts are in the $19 territory. “When we lay that against feed prices right now, none of those prices are exciting and what we’re going to need is some sort of relief on feed costs or an ongoing push in the milk market to carry those margins higher.”
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