MILK
Class III futures woke up Friday right from early morning, as there seemed to be a sense that cheese prices might increase. That they did, as both blocks and barrels jumped as buyers came to the market aggressively. It is unclear why this interest suddenly erupted Friday, but it may have stemmed from the hope that another large stimulus will mean more food programs that would increase dairy demand. The House clearing the way for another large stimulus seems to have received the same interest as the previous one did back just before Christmas. Whether this will lose interest after a few days or whether this time it will result in a sustained trend higher will be seen next week. April and May closed limit up with expanded limits of $1.50 in place Sunday night. Class IV futures ended with mostly double-digit gains after Grade A nonfat dry milk price bounced back.
AVERAGE CLASS III PRICES
| 3 Month: | $16.48 |
| 6 Month: | $17.02 |
| 9 Month: | $17.23 |
| 12 Month: | $17.23 |
CHEESE
For the week, blocks gained 6.25 cents with 19 loads traded. Barrels gained 11 cents with 14 loads traded. Dry whey was unchanged with just one load traded. Block cheese reversed the earlier trend of the week in one fell swoop. Barrel extended the gains of the previous two days. There has been no indication of any tightness of supply or other change in fundamentals. Buying interest may be the result of the desire to take advantage of lower prices in case more money is appropriated for food programs that would increase demand for dairy and reduce inventory growth.
BUTTER
Price is expected to erode back down to the level it has been prior to the large jump in price. Even greater buying interest that might stem from food programs will be difficult to reduce large inventory. Butter does not share the same optimism as cheese. For the week, butter gained 2.25 cents with 23 loads traded. Grade A nonfat dry milk fell 5.25 cents with 60 loads traded.
OUTSIDE MARKETS SUMMARY
March corn declined 1.25 cents, closing at $5.4850. March soybeans declined 5.75 cents, ending at $13.6675, with March soybean meal down $2.60, closing at $430.50 per ton. March wheat increased 3.75 cents, ending at $6.4125. April February live cattle increased $0.27, closing at $116.72. March crude oil gained $0.62, closing at $56.85 per barrel. The Dow gained 92 points, closing at 31,148, while the NASDAQ gained 79 points, closing at 13,856.
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