MILK:
There is plenty of milk available for bottling and manufacturing needs. Food service demand has been increasing but is now mixed due to the pipeline being filled sufficiently for the time being. Overall demand for dairy is strong. Loads of milk are moving around to either satisfy manufacturing or bottling needs in some areas or due to heavy supplies in other areas. Many plants indicate they are running at capacity. Many plants in the Upper Midwest report they are not able to take on any additional milk. If a plant breaks down and cannot process all their regular supply of milk, it is very difficult, if not impossible, to divert that milk to another plant. Some of it needs to move a long distance. The concern is that much of the nation has not yet moved into spring flush. As I have indicated before, the issue this spring may not be the lack of demand, but the inability of plants to process all the milk. USDA will release the February Livestock Slaughter report Thursday.
Average Class III Prices:
| 3 Month: | $16.68 |
| 6 Month: | $17.23 |
| 9 Month: | $17.55 |
| 12 Month: | $17.57 |
CHEESE:
Block cheese price continues to slide lower but has not fallen below the range established since November. Blocks have been slowly eliminating the gains that were realized during the first half of March. So, all in all, cheese prices have been holding well, but just not trending higher as most would like to see. Demand for certain varieties of cheese has slowed a little, but nothing to cause any concern. Supply of fresh cheese has caught up with demand, leaving the market somewhat balanced.
BUTTER:
Retail sales have been strong as stores have been advertising butter in spring promotions. The Passover/Easter season is also a strong demand period for butter. Most of that has been shipped and in the hands of retail or already in the hands of consumers. Butter price is now back above blocks where it has not been for quite some time. Historically, butter was near or slightly above blocks most of the time. That has not been the case for the past few years. Export demand remains strong, keeping inventory from building too rapidly.
OUTSIDE MARKETS SUMMARY:
May corn gained 2 cents, closing at $5.5325. May soybeans gained 9.50 cents, ending at $14.3275 with May soybean meal up $2.20 per ton, closing at $401.00. May wheat fell 10 cents, ending at $6.2475. April live cattle closed unchanged at $119.12. May crude oil jumped $3.42, closing at $61.18 per barrel. The DOW slipped 3 points, ending at 32,420 while the NASDAQ fell 266 points, closing at 12,962.
