MILK
Milk futures fell slightly Friday despite spot butter and nonfat dry milk prices increasing. Class III was just below $24, while Class IV is above the $25 mark. Milk production has been varied throughout the country. The West and Midwest proved to have higher milk yields due to nicer weather, while the Eastern part has a forecast snowstorm for this weekend. Cream demand is starting to increase and remains available for all types of producers.
AVERAGE CLASS III PRICES
| 3 Month: | $23.39 |
| 6 Month: | $23.64 |
| 9 Month: | $21.02 |
| 12 Month: | $24.12 |
CHEESE
Cheese prices continued to decline, with blocks falling 4.25 cents to $2.1900 and barrels falling 6 cents, closing at $2.0100. The weekly average for block cheese averaged 1.989 per pound, increasing 4.4 cents since last week. Barrels averaged $1.96 per pound, which was a 4-cent increase. The bullish market is receiving mixed expectations, with some buyers trying to stay ahead of further price increases, while others think it will slow interests. U.S. cheese prices remain competitive with other countries, with export purchasers looking to fill their second- and third-quarter needs.
BUTTER
Butter saw some strength during spot trading, closing at $2.7100. Butter prices for the week averaged $2.69 per pound, falling 1.9 cents from the previous week. Production activity is mixed, and export demand is strong. Higher international prices and tight inventory of butter is contributing to increased market prices. Nonfat dry milk continued to trade steady slower this week. The monthly average during February was $1.8434 to $2.0001 for nonfat dry milk. Spot dry whey remained at $0.7575.
OUTSIDE MARKETS SUMMARY
March corn futures were up 6.75 cents to $7.65 per bushel. Soybean futures for March fell 9.25 cents to settle at $16.97 per bushel, while soybean meal declined $13.70 to settle at $493.10 per ton. March wheat was at $10.90, gaining 16.25 cents. Live cattle for April were up $1.40 to $137.30. April crude oil closed at $109.32, increasing $3.30. The Dow dropped 229 points, closing at 32,944.19, while NASDAQ dropped 286 points to 12,843.81.
