MILK
The calendar is moving forward with spring flush beginning in most areas. Milk receipts at plants are increasing from the low level, but production is not running above a year ago. Most plants are receiving sufficient milk supply to satisfy demand with many hoping for increased milk supply as spring flush progresses. Plants would like to be able to meet demand as well as build inventory for upcoming demand. There is strong demand for dairy cattle and spring heifers at sales, as some producers are looking to keep barns full. Demand for bottled milk is variable depending on school systems and when they have spring break. Overall bottling demand is steady. USDA announced the March Federal Order class prices. Class II price was $24.76, up $0.97 from February and up $9.69 above a year ago. Class III price was announced at $22.45, up $1.54 from February and $6.30 above a year ago. Class IV price was $24.82, up $0.82 from February and $10.64 above a year ago.
AVERAGE CLASS III PRICES
| 3 Month: | $23.70 |
| 6 Month: | $23.62 |
| 9 Month: | $23.36 |
| 12 Month: | $21.91 |
CHEESE
Cheese price may have found a level at which buyers and sellers may be comfortable doing business. Initial lower prices during spot trading brought in more aggressive buying. This could continue as buyers would like to increase their ownership of supply and would like to take advantage of these lower prices. However, buyers also may have a good supply already purchased ahead and may not need to be very aggressive for the time being.
BUTTER
Later butter futures contracts continue to hold a discount for current cash. Generally, futures would carry a premium in anticipation of increasing demand and higher prices later in the year. Price might remain in a sideways range for some time as buyers and sellers take care of business and build supply for later in the year.
OUTSIDE MARKETS SUMMARY
May corn gained 11.75 cents, closing at $7.38. May soybean jumped 21 cents, closing at $16.64, with May soybean meal up $7.01 per ton, closing at $473.10. May wheat gained 13 cents, closing at $10.2725. April live cattle declined $0.72, ending at $140.17. May crude oil gained $3.58, ending at $107.82 per barrel. The Dow declined 65 points, ending at 35,229, while the NASDAQ declined 177 points, closing at 14,442.
