MILK
Milk production varies across the country but is generally increasing as weather warms and spring flush is just around the corner. Output levels are generally higher. That does not mean that milk production is outpacing last year but that production is increasing from the lows of this winter. Corn futures have been choppy in a downward pattern as the market has digested the news and is assessing the potential of supply and demand. USDA will release the Prospective Plantings report at the end of the month, which will provide a better indication of corn production potential. Some schools are closing for spring break over the next several weeks, depending on the area and school system. Bottling demand is a bit lower due to school closings. This is likely the reason spot milk prices are as much as $2 below class. USDA will release the February milk production report on Monday, which should provide some direction for the market. Culling may be slowing based on the recent pattern as well as higher milk prices. However, overall milk production is expected to be lower than a year ago.
AVERAGE CLASS III PRICES
| 3 Month: | $23.30 |
| 6 Month: | $23.72 |
| 9 Month: | $23.64 |
| 12 Month: | $23.16 |
CHEESE
Cheese demand is termed as steady overall. There has been some slowing of demand for some varieties and due to increased prices, but orders remain steady. Buyers are purchasing further out than usual for this time of year. They would rather pay for storing cheese longer than usual rather than scramble for supply later if the market tightens. The key will be the level of demand for fresh cheese as the year progresses. World demand for cheddar cheese remains strong as price on the Global Dairy Trade auction increased 0.3% earlier this week. For the week, block cheese price declined 6 cents with 10 loads traded. Barrels increased 2 cents with 18 loads traded. Dry whey increased 0.25 cent with one load traded.
BUTTER
Demand for cream is increasing, primarily in the West and South, as ice cream manufacturers are slowly increasing production. There is sufficient cream available at reasonable prices, which is keeping churns busy. For the week, butter increased 1.50 cents with 17 loads traded. Grade A nonfat dry milk price increased 2 cents with 14 loads traded.
Outside Markets Summary
May corn fell 12.75 cents, closing at $7.4175. May soybeans declined 0.50 cent, closing at $16.68, with May soybean meal up $2.90 pe ton, closing at $477. May wheat fell 34.25 cents, closing at $10.6375. April live cattle gained $1.02 ending at $140.50. April crude oil gained $1.73 ending at $104.70 per barrel. The Dow gained 274 points, closing at 34,755, while the NASDAQ gained 279 points, closing at 13,894.
