MILK
The May Class IIII contract closed above $25. June could not hold at that level, as selling pressure permeated the market despite the increase of cheese prices. The market needed to correct to move back in line. However, the dry whey price declining and moving back to the lowest level in over three months seemed to garner some attention by the trade. Dry whey has declined 14.50 cents since the high, which equates to a decrease of 87 cents in the calculation of the Class III price. However, the focus has been on cheese, leaving limited attention on dry whey. Milk futures closed higher for the week, improving the outlook for milk prices significantly. There are only two days remaining to trade March milk futures and options, with the March Federal Order prices announced next week Wednesday. Traders anticipate a March Class III price of $22.42 and a Class IV price of $24.85.
AVERAGE CLASS III PRICES
| 3 Month: | $23.91 |
| 6 Month: | $24.19 |
| 9 Month: | $24.01 |
| 12 Month: | $23.55 |
CHEESE
For the week, blocks increased 14.50 cents with eight loads traded. Barrels increased 22 cents with 27 loads traded. Dry whey declined 4 cents with three loads traded. Buyers were aggressive this week as continued increasing prices brought buyers into the market in the attempt to gain ownership of cheese before prices moved higher. The result is that buyers leapfrog over each other, which in turn drives prices higher. However, the rise seems to be solid without any void developing under the market.
BUTTER
For the week, butter increased 7 cents with seven loads traded. Grade A nonfat dry milk price declined 0.75 cent with 24 loads traded. Nonfat dry milk price has traded in a range for a little more than the past month. Demand is strong enough to keep price elevated which will in turn keep Class IV futures supported. Churning is active and supply is sufficient.
OUTSIDE MARKETS SUMMARY
May corn gained 5.75 cents, closing at $7.54. May soybeans gained 9.50 cents, ending at $17.1025, with May soybean meal up $2.00 per ton, closing at $487.90. May wheat gained 16.50 cents, ending at $11.0225. April live cattle gained $0.80, ending at $140.47. May crude oil gained $1.56, closing at $113.90 per barrel. The Dow closed 153 points higher at 34,861, while the NASDAQ declined 23 points, closing at 14,169.
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