| Class III Milk Futures: | 5 to 20 Lower |
| Class IV Milk Futures: | Steady to 5 Lower |
| Butter Futures: | Mixed |
| Corn Futures: | 14 to 18 Higher |
| Soybean Futures: | 13 to 16 Higher |
| Soybean Meal Futures: | $4 to $5 Higher |
| Wheat Futures: | 40 to 60 Higher |
Milk futures did not accomplish much last week. Class III futures closed slightly lower for the week with Class IV futures somewhat steady. Block cheese and dry whey prices were weaker while butter was higher. The market is trying to determine overall demand as food prices rise. Schools will be closing over the next few weeks with bottlers for school accounts already reducing fluid demand. More milk will move to manufacturing, which should improve supplies and build inventory. Extra milk will be easily handled and welcomed by manufacturers as dairy demand remains strong. There is concern over the impact inflation will have on overall dairy demand as food prices rise. The Global Dairy Trade auction will take place Tuesday, which may provide more indication as to the impact inflation is having on world prices. The last auction showed prices declining significantly. Milk futures are showing further losses on the overnight trade, with that expected to continue prior to spot trading.
CHEESE:Cheese prices seem to be trading in a sideways pattern as the trade assesses supply and demand. Cheese production should increase as more milk moves to manufacturing over the coming weeks. Dry whey price has been under pressure with further weakness expected.
BUTTER:Price is not expected to move very much as churning remains active. Cream supplies have tightened but remain ample for steady production. Export demand remains strong, which should continue to provide support to price. Inventory continues to slowly build but remains far from exceeding the level of a year earlier.
