MILK
Milk futures did not move to any great extent Tuesday with Class III futures mostly lower while Class IV futures were generally steady. Underlying cash left little reason for milk prices to move. The Third South Dairy Trade report was released Tuesday, which shows volume and prices of dairy products moved through ports in Argentina and Uruguay over a two-week period. The average price per ton of dairy products moving through ports in Argentina was $4,145.31 per ton, moving to 19 export destinations during the period of Feb. 16-28. The volume exported reached 15,683.72 tons. Whole milk powder price increased 2.0% to $4,029.93 per ton or $1.83 per pound. Skim milk powder declined 1.3% to $3,404.33 per ton or $1.54 per pound. Semi-hard cheese increased 0.2% to $4,089.85 per ton or $1.86 per pound. Hard cheese declined 4.6% to $6,027.63 per metric ton or $2.73 per pound. Butter increased 5.2% to $5,123.99 per metric ton or $2.32 per pound. There were 7,395.80 tons of dairy products moved through Uruguay to 20 destinations at an average price of $3,964.29 per ton. Whole milk powder declined 0.3% to $3,870.05 per ton or $1.76 per pound. Skim milk powder increased 3.5% to $3,612.68 per ton or $1.64 per pound. Semi-hard cheese increased 1.0% to $4,098.53 per ton or $1.86 per pound. Hard cheese declined 19,2% to $5,240.10 per ton or $2.38 per pound. Butter increased 10.4% to $5,431.63 per ton or $2.46 per pound.
AVERAGE CLASS III PRICES
| 3 Month: | $24.58 |
| 6 Month: | $24.48 |
| 9 Month: | $24.16 |
| 12 Month: | $23.59 |
CHEESE
Buyers and sellers of cheese must be comfortable at the current price level. Or maybe no one wants to determine the next price movement with one side waiting for the other to move price first. This leaves traders guessing as to what takes place next. Price is supported, which should limit downside risk, providing confidence for cheese buyers to purchase early and hold rather than speculate on a dip in prices later in the year.
BUTTER
Butter futures were under significant pressure Tuesday with only a minor spot price decline. Futures have no price premium built into the market, which is unusual for this time of year. It would be a very flat year if price remains in the current price range. However, butter would be at a historically high price if it remained here.
OUTSIDE MARKETS SUMMARY
May corn gained 13.50 cents, closing at $7.33. May soybeans gained 15 cents, closing at $16.7025, with May soybean meal up $1.80 per ton, closing at $460.90. May wheat jumped 22.50 cents, ending at $11.0375. April live cattle gained $1.42, closing at $139.95. May crude oil jumped $6.31, ending at $100.60 per barrel. The Dow declined 88 points, ending at 34,220, while the NASDAQ declined 40 points, closing at 13,372.
