MILK
Traders have been unable to determine a trend for Class III futures, while Class IV futures have been in a downtrend. Butter price has been fairly stable, while nonfat dry milk continues to weaken, putting pressure on Class IV futures. Milk production is steady to higher with limited reports of any substantial impact on milk production so far in California other than plant delays and some delivery delays. Otherwise, there remains sufficient milk for both bottling and manufacturing. On the World Agricultural Supply and Demand report, USDA reduced domestic use of milk on a fat basis for the year by 700 million pounds, leaving ending stocks unchanged at 14.7 billion pounds. On a skim solids basis, they increased the ending stocks estimate by 300 million pounds to 11.5 billion pounds, while reducing domestic use by 200 million pounds to a total of 182.0 billion pounds.
AVERAGE CLASS III PRICES
| 3 Month: | $18.78 |
| 6 Month: | $18.86 |
| 9 Month: | $19.17 |
| 12 Month: | $19.33 |
CHEESE
Cheese has been volatile over the past month with unprecedented wild price swings over a short period of time. This keeps traders guessing as to the direction of the market, but it is also causing them to be a bit less willing to move futures one way or the other very quickly, keeping futures movement less than what cash would indicate. We could be in for a crazy first quarter. For the week, blocks declined 5.50 cents with 10 loads traded. Barrels declined 1.75 cents with 24 loads traded. Dry whey declined 5.75 cents with 25 loads traded.
BUTTER
Price was able to gain on the week with limited daily price movement. Spot price gained 4.50 cents with two loads traded. Grade A nonfat dry milk price declined 4.25 cents with five loads traded. There is little reason for buyers and sellers to move the market, as business is being done without difficulty and without any concern over supply. Increased churning is keeping sufficient production readily available.
Outside Markets Summary
March corn gained 4 cents, ending at $6.75. March soybeans gained 9.25 cents, closing at $15.2775, with March soybean meal down $5 per ton, closing at $476.30. March wheat gained a penny, ending at $7.4375. February live cattle gained $0.17, closing at $157.72. February crude oil gained $1.47, closing at $79.86 per barrel. The Dow gained 113 points, ending at 34,303, while the Nasdaq gained 78 points, closing at 11,079.
