World Ag Outlook Board Chair Mark Jekanowski said that the month-over-month changes on prices are notable. Jakanowski said, “In terms of product prices, kind of mixed there. So, cheese prices we raised $0.02 per pound, reflecting pretty tight inventories, but the other main products— butter, non-fat dry milk, dry whey. We lowered butter, we reduced $0.05 per pound. Non-fat dry is down $0.04 and dry whey forecast we reduced $0.03 per pound.”

Meanwhile, all milk prices fell compared to the month prior. Jekanowski attributes some of this month’s price changes to the new Federal Milk Marketing Order. That is especially true for class prices, because of changes to how they are calculated.

Also, in USDA’s latest estimate published in late January, they project there are 3.914 million dairy heifers in the 500-pounds-and-higher category. Generally speaking, those dairy heifers 500 pounds and larger are either ready to enter breeding pens or those that are pregnant and will soon enter the milk barn. That 3.914 million total is the lowest since 1978, when USDA calculated that there were 3.886 million heifers in that herd category.