Milk:
Class III futures followed a similar pattern as Wednesday with closer months higher and later months declining. There is an idea that the Food Box program may not be extended and milk supply will be very large. The issue that might develop over the next few months will be the handling of a large milk supply. Extra milk that is available in the Midwest is finding limited buyer interest due to most plants already running at capacity either from heavy milk supply or having difficulty remaining completely staffed. It is reported that spot milk prices have not really changed from where they were during the holidays. February Class III futures attempted to reach $20.00 Thursday but fell 12 cents short of reaching that level at one point during the day. Milk production continues to grow as overall weather remains somewhat mild for this time of year. Concern is being voiced over the level of milk production that will be realized over the next few months as the calendar moves closer to spring flush. Increased milk demand for programs will help to move heavier supply. The concern is what would take place if the Food Box program is not extended past April.
Average Class III Prices:
| 3 Month: | $18.48 |
| 6 Month: | $18.26 |
| 9 Month: | $18.06 |
| 12 Month: | $17.92 |
Cheese:
Cheese markets received a boost as a result of the Farmers to Families Fox Box program. This has resulted in some booking of cheese through the first quarter of the year in order to lock in supply. Production schedules are strong as milk receipts continue to increase. Demand through retail has slowed a bit after the holidays as was anticipated but continues to remain strong as grocery store shelves are restocked. There is some thought that some buyers of cheese are purchasing to store product for a little while before bringing it back to the market to make a nice profit.
Butter:
There is no question over whether there is an abundance of butter available to the market. The past two days have supported that idea. Churns remain active as cream supplies remain large. Spot cream supply is having a somewhat difficult time finding a home as some plants have no interest in purchasing extra supply. Food service demand remains slow with no change expected for the foreseeable future.
Outside Markets Summary:
March corn declined a penny to $4.94. January soybean declined 4.75 cents, ending at $13.6050 with January soybean meal down $5.30 per ton, ending at $438.00. March wheat declined 5.25 cents, closing at $6.4225. February live cattle slipped $0.02, closing at $114.97. February crude oil gained $0.20, ending at $50.83 per barrel. The DOW gained 212 points, closing at 31,041 while the NASDAQ gained 327 points, closing at 13,067.
