MILK
There was little fanfare in the market today with early strength of Class III futures giving way to mixed trading even though the underlying movement of cheese prices would have indicated higher trade. The gain of barrels outweighed the weakness of blocks, but traders were not convinced the higher barrel price will hold. There is little fundamental reason milk price will increase anytime soon. Even if culling would increase over the next few months, there is sufficient milk available to satisfy demand. It would take a significant decline of milk production to provide long-term support to milk prices. However, we saw significant price increases last year based on trade perception of milk supply and the same could take place this year. Currently, any strength does not last long keeping the market choppy.
AVERAGE CLASS III PRICES
| 3 Month: | $17.77 |
| 6 Month: | $18.31 |
| 9 Month: | $18.75 |
| 12 Month: | $18.83 |
CHEESE
Barrel price popped up to the highest price it has been since January 23. This had little influence on Class III futures. A trend has yet to develop other than sideways price movement. Strong cheese output is satisfying good demand leaving buyers purchasing on price dips and sellers selling on price strength.
BUTTER
It is difficult to assess which way spot price will move after remaining steady today. Price has remained steady for two consecutive days. Butter has been in a range since late December and is not expected to change anytime soon. Buyers and sellers are comfortable doing business at the current level.
OUTSIDE MARKETS SUMMARY
March corn slipped 0.75 cent ending at $6.4450. March soybeans gained 10.50 cents closing at $15.41 with March soybean meal gaining $9.80 closing at $507.90 per ton. March wheat lost 13.25 cents closing at $6.8250. April live cattle gained $0.67 ending at $166.10. April crude oil increased 0.78 closing at $80.46 per barrel. The Dow gained 40 points closing at 33,431 while the Nasdaq slipped 13 points closing at 11,676.
