MILK:
Milk production remains steady, for the most part, across the country. Milk production in the West is reported as steady to higher. The winter storm moving across country is affecting transportation, but it is not expected to have a lasting impact on the supply and handling of milk. The greater issue remains the lack of truck drivers as well as farms that are struggling with having sufficient employees. The winter storm adds more work to keeping cows fed and driveways open where there may not be enough workers to take care of everything. Consumers made a run on milk prior to the storm, which does not increase overall demand in the long term, but does require retail outlets to order more milk to restock shelves in the short term. Milk in the Midwest is available with spot milk selling at class to as much as $2 below class. This is stronger than previous years for this time of year. There is sufficient milk supply for both bottling and manufacturing.
AVERAGE CLASS III PRICES:
| 3 Month: | $21.05 |
| 6 Month: | $21.15 |
| 9 Month: | $21.07 |
| 12 Month: | $20.79 |
CHEESE:
Cheese prices remain supported. However, the rise of prices may be slowing as production remains steady and much of the increased demand for the Super Bowl has already been shipped. There is good demand from the international market, which should continue as world prices increase. Buyers of cheese have caught up on orders and have already purchased supply for expected demand through the first quarter and already some into the second quarter. The increase of barrels failed to push Class III futures higher as traders may feel the upside price potential from here may be limited.
BUTTER:
Lower price is having a difficult time uncovering aggressive buying interest. Buyers are satisfied with current supplies they have on hand and are purchasing on an as-needed basis as orders are placed. Cream is readily available in the Central Region of the country, allowing for churning activity to increase. There have been reports that butter sales have slowed a bit, which may explain the reason price has been under pressure. Inventory is expected to build slowly as production improves.
OUTSIDE MARKETS SUMMARY:
March corn declined 5.75 cents, closing at $6.1675. March soybeans declined a penny to $15.4425 with March soybean meal up $2.00 per ton, closing at $437.10. March wheat declined 3.25 cents, closing at $7.5175. February live cattle gained $0.47, closing at $141.60. March crude oil jumped $2.01, ending at $90.27 per barrel. The Dow fell 518 points, closing at 35,111, while the NASDAQ fell 539 points, closing at 13,879.
