MILK:
Milk production is mixed across the country with sufficient supply for current demand. Sales of fluid milk are lower in large part due to schools being closed. This will increase next week as schools will again be in session. There is some uncertainty as far as school attendance is concerned as the surge in COVID impacts many areas of the country. It is unclear how that will affect dairy demand. The greater problem might stem from the lack of workers at the plant level, as well as the movement of milk and dairy products as time moves forward. It is clearly evident that logistical problems will continue and potentially become worse than they have been. Retail demand for milk is steady as consumers spend more time at home. Milk component levels are strong due to generally good quality feed available in most areas. Discounted milk is being sought after as long as it is available. Manufacturers are trying to get ahead of strong demand activity, producing dairy products to meet that demand.
AVERAGE CLASS III PRICES:
| 3 Month: | $19.81 |
| 6 Month: | $19.99 |
| 9 Month: | $20.00 |
| 12 Month: | $19.98 |
CHEESE:
For the week, blocks increased 10.75 cents with seven loads traded. Barrels increased 6 cents with 30 loads traded. Over the past two weeks, blocks have increased 9.25 cents while barrels have increased 8 cents. Dry whey price was unchanged for the week with no loads traded. Dry whey price is up 2 cents over the past two weeks. Demand from the food service industry has decreased recently while retail demand remains strong.
BUTTER:
For the week, butter jumped 20.50 cents with 30 loads traded. Over the past two weeks, price has increased 36.25 cents with a total of 58 loads traded. Buyers were leap frogging over each other in their attempt to purchase supply before price increased further. The problem is that the frenzy continued to push price higher, maybe more than it should have. Nevertheless, price is holding at these higher levels. Grade A nonfat dry milk price declined 1.50 cents this week with 12 loads traded. Price has declined 2.25 cents over the past two weeks with 25 loads traded.
OUTSIDE MARKETS SUMMARY:
March corn declined 2.75 cents, closing at $5.9325. January soybeans gained a penny to $13.2875 with January soybean meal down $1.90 per ton, closing at $411.70. March wheat fell 9 cents, ending at $7.7075. February live cattle declined $0.27, closing at $139.70. February crude oil fell $1.78, closing at $75.46 per barrel. The DOW declined 60 points, closing at 36,338 while the NASDAQ declined 97 points, closing at 15,645.
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