MILK:
Milk futures made a nice rebound despite only a minimal increase of barrel cheese. The fact that there was an increase of barrels and dry whey was enough to trigger strong buying interest as traders exited sold positions. It really did not indicate a change in trend or that a bottom was again established, but traders did not think prices should have declined as much as they had, so they are wound up like a spring. Any indication of strength or weakness will be overexaggerated. This should not be surprising, as it is the nature of the market. Many farms have indicated that even with increased culling and balancing the ration to reduce cost, it has resulted in increased production. Reducing crowding sometimes results in increased production. Balancing rations sometimes results in finding alternatives that work better in the ration. Spot milk supply has not changed much in the Midwest with supplies remaining available but still with slight discounts. Milk continues to move around between plants to either handle extra milk due to employee shortages or to fill plants that can process more and desire to run on full schedules.
AVERAGE CLASS III PRICES:
| 3 Month: | $20.30 |
| 6 Month: | $20.66 |
| 9 Month: | $20.71 |
| 12 Month: | $20.57 |
CHEESE:
Spot cheese markets did not provide much direction Thursday, but traders reacted significantly in milk futures. Barrel buyers were a little more aggressive, but block price was uncertain. There were bids below the market with limited interest in pushing them higher. The offer was higher with no interest in lowering. Demand for cheese at the retail level is termed as steady with demand from the food service industry weaker. Demand for cheese from pizza manufacturers is strong for the playoffs and the Super Bowl..
BUTTER:
Spot butter trading was anticipated to be volatile, but nothing exciting came out of it, as price remained unchanged. Lower bids were placed with a substantially higher offer posted with little interest in coming together to do any business. Bulk butter continues to remain tight. Cream is available but not as available as it had been during the holidays.
OUTSIDE MARKETS SUMMARY:
March corn declined 1.75 cents, closing at $6.2525. March soybeans gained 8.25 cents, closing at $14.4825, with March soybean meal up $4.20 per ton, closing at $404.70. March wheat fell 18 cents, ending at $7.77. February live cattle slipped $0.22, closing at $137.82. March crude oil declined $0.74, closing at $86.61 per barrel. The Dow slipped 7 points, while the NASDAQ fell 189 points.
