MILK
Class IV futures were under significant pressure again today and substantial losses over the past two days. Class III futures were but with not quite as much pressure. There had been anticipation that a low might have been established in the market with buyers stepping up to purchase for later demand. There has been no concern over supply, but some traders were looking back over their shoulders to the market movement of last year and believed some of that movement will unfold again this year. That may be the case over time, but buyers are not fearing a tightening of milk production anytime soon. That may change if the milk production report to be released next week shows a significant decrease in cow numbers from December again. It is reported that some schools with be closing next week for spring break which will allow more milk to move to manufacturing. Spot milk in the Midwest continues to run as much as $10.00 below class for the eighth consecutive week which is very unusual. Most spot milk is around $5.00 under class.
AVERAGE CLASS III PRICES
| 3 Month: | $17.81 |
| 6 Month: | $18.33 |
| 9 Month: | $18.86 |
| 12 Month: | $19.06 |
CHEESE
Cheese sales are termed as mixed. Barrels supplies are more plentiful which is one reason the block/barrel spread is at 34.25 cents after spot trading today. Barrel price moved to the lowest level since November 29, 2021. Some manufacturers report customers have reduced the volume of cheese that they had been getting. Some varieties of cheese continue to see good demand. Weekly cold storage from selected storage centers so far this month show a reduction of cheddar cheese stocks of 1%. However, inventory is expected to show an increase for the month of January.
BUTTER
Butter sales are reported to be good and generally meeting expectations. That being said, it is a bit lower than usual for this time of year. Cream is readily available and flowing into churns keeping plants busy. This is what is keeping demand satisfied and inventory increasing. Weekly cold storage indicates butter inventory in selected storage center up 11% so far this month.
OUTSIDE MARKETS SUMMARY
March corn declined 6 cents closing at $6.7625. March soybeans declined 11.75 cents closing at $15.2575 with March soybean meal down $9.90 per ton closing at $491.10. March wheat declined 16.75 cents ending at $7.6925. February live cattle gained $0.40 closing at $162.55. March crude oil declined $0.47 closing at $78.59 per barrel. The Dow gained 39 points closing at 34,128 while the Nasdaq gained 110 points closing at 12,071.
