MILK
Milk output in the Northeast region is steady to improving, according to USDA's Dairy Market News. Class I fluid sales are strong with some of that tied again to the storm system that will be moving through the area as well as through other areas of the country. Storms always tend to increase demand, as consumers increase purchases from grocery stores. Fluid milk demand has been strong in general anyway for a period. It has been strong enough in the Northeast and Mid-Atlantic regions, requiring milk to come in from outside the regions in order to supply manufacturing. The March Class I price was announced at $22.88. This is $1.24 higher than February and $7.68 higher than a year ago. This is the highest Class I price since November 2014. Milk futures came under significant pressure due to the weakness of underlying prices. Traders liquidated long positions, adding to the pressure with March Class III futures moving limit down at one point but not closing there. Right now, this looks like what took place when prices fell from the last high in January.
AVERAGE CLASS III PRICES
| 3 Month: | $21.92 |
| 6 Month: | $21.87 |
| 9 Month: | $21.70 |
| 12 Month: | $21.34 |
CHEESE
It is interesting to see milk in the Central region is being offered at class or slightly below. Milk is available and termed as balanced. Some milk is moving to other regions to balance supply with demand. Cheese demand is termed as steady with regular consumer demand being supplied. This may result in cheese prices moving in a wide price range as prices reach near $2. Buyer interest may slow down, causing prices to fall back to a level at which buyers will again step back in more aggressively. It is likely price will see a retracement to some extent.
BUTTER
Manufacturers are increasing churning schedules due to increased cream supply. The goal is to satisfy demand as well as prepare for the Easter season by building some inventory. Demand from the food service industry has slowed but not enough to have a significant impact on the market as current price indicates. International demand remains strong due to higher price and tight supply in world markets.
OUTSIDE MARKETS SUMMARY
March corn gained 9 cents, closing at $6.47. March soybeans jumped 36.25 cents, closing at $15.8750, with March soybean meal up !0.60 per ton, closing at $449.40. March wheat gained 0.75 cent, ending at $7.8050. February live cattle gained $0.22, ending at $143.12. March crude oil gained $1.59, closing at $93.66. The Dow declined 55 points, closing at 34,934, while the NASDAQ slipped 16 points, closing at 14,124.
