MILK:
Milk production is generally steady to slightly higher across the county with good demand from both bottling and manufacturing. Along with the steady milk production and good demand, the industry continues to deal with freight and export issues that has had, and is having, some impact on the movement of dairy products. However, even with that, supply is getting to where it needs to be as buyers are purchasing production ahead of the usual time to compensate for delays. Exports had a phenomenal year, setting a record for the value of dairy products exported as well as a record amount of cheese exported. The dairy industry is doing a good job of taking care of business during difficult challenges. April and later Class III futures continue to make new contract highs. Futures did back off substantially as the day progressed with some contracts moving into negative territory after futures were settled for the day and electronic trade continued. Class IV futures made new contract highs from March on out.
AVERAGE CLASS III PRICES:
| 3 Month: | $22.14 |
| 6 Month: | $22.22 |
| 9 Month: | $22.04 |
| 12 Month: | $21.68 |
CHEESE:
For the week, blocks increased 0.75 cent with two loads traded. Barrels increased 1.50 cents with 10 loads traded. Dry whey declined 3.50 cents with 15 loads traded. This spot activity in no way should have pushed Class III futures over $1 higher since last Friday. Optimism erupted over USDA's substantial increase in estimates of average prices for the year. Traders have their sights set on continued support and further increases of cheese and dry whey prices.
BUTTER:
For the week, butter jumped 25.50 cents higher with eight loads traded. Most of the gain for the week took place Friday. Grade A nonfat dry milk price gained 6.50 cents with 16 loads traded. Churning has been active as they have been preparing for the Easter holiday season already. They need to prepare ahead of time due to issues with keeping a full staff as well as some hauling issues. If fact, it was reported this week that some plant managers are already looking ahead to demand for the fall. That is really thinking ahead.
OUTSIDE MARKETS SUMMARY:
March corn gained 9.25 cents, closing at $6.51. March soybeans gained 8.75 cents, closing at $15.83, with March soybean meal up $2.60, closing at $456.60 per ton. March wheat jumped 26.25 cents, ending at $7.9775. February live cattle declined $0.47, closing at $141.87. March crude oil jumped $3.22 per barrel, closing at $93.10. The Dow fell 504 points, ending at 34,738, while the NASDAQ fell 394, ending at 13,791.
