MILK
Class III milk futures could not gain any traction this week even though cheese and butter prices were higher. Contracts through May closed lower for the holiday-shortened week. Traders were not convinced underlying cash prices were going to maintain price strength for any duration of time. During the holiday periods, there are plentiful milk supplies available with discount spot milk very attractive for those who have the capacity for processing it. Dairy Market News reports that Central region cheese makers are receiving calls to take extra milk with some offers at double-digit discounts. They did not indicate any range of prices, but that sellers are aggressive at offering milk. It was anticipated there would be price discounts, but to this extent is more than expected. Overall milk production is increasing seasonally, providing plentiful supplies across the country. This is likely what is keeping traders from buying milk futures as current fundamentals are not supportive to stronger prices and a change in trend. Dairy futures and options will not be open for trading on Friday with no spot markets trading. Other futures market will be trading for a shorter time period than usual.
AVERAGE CLASS III PRICES
| 3 Month: | $18.15 |
| 6 Month: | $17.28 |
| 9 Month: | $17.11 |
| 12 Month: | $17.08 |
CHEESE
Cheese prices were finally able to post a positive week. However, the result might have been different if it would have traded the rest of the week. Block price increased 3.50 cents with two loads traded. Barrel price remained unchanged with 22 loads traded. Dry whey price declined 0.75 cent with one load traded. Prices may have found a level at which business will be done for the time being, leaving the market in a sideways price pattern. More cheese will be manufactured this week as milk is diverted from school accounts. Retail demand is showing an increase, but this is not offsetting the reduction from the food service industry.
BUTTER
For the week, butter increased 1.50 cents with 73 loads traded. This is incredible that that much volume has traded over the past three days. It is almost as if business needed to be done due to the fact that it was a holiday-shortened week. Grade A nonfat dry milk increased a penny with 23 loads traded.
OUTSIDE MARKETS SUMMARY
December corn declined 5.75 cents, closing at $4.20. January soybeans lost 7.25 cents, closing at $11.84, with December soybean meal down $1.40 per ton, closing at $396.90. December wheat fell 23 cents, ending at $5.8825. December live cattle gained $0.20, closing at $111.37. January crude oil gained $0.80, closing at $45.71 per barrel. The Dow declined 174 points, ending at 29,872, while the NASDAQ gained 58 points, closing at 12,094.
 |
| #completedairyprogram |
