MILK
An earlier-than-usual spring flush is reportedly taking place in California with production higher than it was last year at this time. The weather forecast throughout much of the country is for somewhat mild weather and will be conducive for continued growth of milk production, spring flush is expected to begin earlier than usual in all areas of the country and may last longer than usual as well. The information that has finally come through is that there has been a substantial amount of milk that had been dumped during the winter storms a few weeks ago. Dairy Market News reports it as "thousands to millions of pounds of disposed milk, depending on the source." That is quite a large variation, but it has had an impact on milk supply in the pipeline. Supplies are expected to be back to normal with available milk above year-earlier levels over the next weeks. It has been a positive week for milk futures with support stemming from higher cheese and butter prices.
AVERAGE CLASS III PRICES
| 3 Month: | $17.36 |
| 6 Month: | $17.77 |
| 9 Month: | $17.91 |
| 12 Month: | $17.80 |
CHEESE
Cheese prices finished a strong week with blocks up 11.25 cents with 12 loads traded and barrels up 8.75 cents with nine loads traded. Blocks have moved to the highest level since Jan. 20 with barrels at the highest since Feb. 11. Dry whey gained 2.25 cents for the week with five loads traded. There are a growing number of states that are relaxing restrictions on restaurants and other public gatherings. This has improved demand from those areas of business. Retail sales remain strong but may slow a bit as restaurant demand improves. However, there will be a limit to this change as many restaurants have gone out of business and people may not return to eating out very quickly.
BUTTER
Butter shined this week with price increasing 22 cents with 35 loads traded. Grade A nonfat dry milk increased 4.50 cents with 33 loads traded. Reports indicate cream supplies are very abundant with churns very busy producing butter. Food service demand is improving along with export demand.
OUTSIDE MARKETS SUMMARY
March corn jumped 15.75 cents, closing at $5.62. March soybeans jumped 19 cents, closing at $14.3425, with March soybean meal up $1.90 per ton, closing at $420. March wheat gained 4.25 cents, ending at $6.54. April live cattle gained $0.47, closing at $119.02. April crude oil jumped $2.26, ending at $66.09 per barrel. The Dow gained 572 points, closing at 31,496, while the NASDAQ gained 197 points, closing at 12,920.
.jpg)
