Milk:
Reports so far this week generally indicated milk production to be steady with last week. There is sufficient milk available for both manufacturing and bottling needs. There are a few months before spring flush gears up and reaches its peak. Continued overall growth of milk production may mean some difficulties handling the milk over the next few months. However, increased demand through government buying programs may utilize the extra milk. The problem might end up being a possible lack of manufacturing and bottling capacity. Many plants are running at or nearly at capacity. Farmers seem to have no intention of reducing milk production due to the anticipation of good milk prices for the year. This, along with good weather so far this winter, is keeping milk production very strong.
Average Class III Prices:
| 3 Month: | $16.10 |
| 6 Month: | $16.51 |
| 9 Month: | $16.79 |
| 12 Month: | $16.90 |
Cheese:
Cheddar cheese sales have been reported to have increased, which is understandable due to the fifth round of the Farmers to Families Food Box program. Stronger buyer interest is being easily met with sufficient supply. Buyers of cheese are approaching the market with caution as they do not want to be too aggressive with purchases as supplies are growing. On the other hand, they want to make sure they have sufficient supply to meet demand. Buyers will remain a bit on edge through much of the year as the impact of government purchasing last year will remain fresh on their minds. There is anticipation food service demand will slowly increase as the year progresses.
Butter:
Churning remains very active across much of the country as cream supply is heavy. Some plants have sold some extra cream but at lower prices. Many plants do not want extra supply at the current time as they try to manage inventory by utilizing their own supply. Retail sales are good, but not good enough to keep inventory from building. This may be a problem for much of the year as production might overwhelm demand.
Outside Markets Summary:
March corn gained 1.75 cents, closing at $5.34. March soybeans gained 4.50 cents, ending at $13.7475 with March soybean meal up $0.10 per ton, closing at $436.60. March wheat declined 7 cents, closing at $6.5825. February live cattle declined $0.55, ending at $116.45. March crude oil gained $0.24, closing at $52.85 per barrel. The DOW fell 634 points, closing at 30,303 while the NASDAQ fell 355 points, ending at 13,271.
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