MILK
Class III milk futures settled 4 to 10 cents lower, while Class IV was 4 cents lower for March. Class IV April and May had no trades. Milk production is reported to be steady to higher across the country. While cream is available for all end users, demand is lower compared to recent weeks. Recent winter weather in the Midwest held up some milk deliveries. With schools done with spring break, fluid demand has slightly increased. The National Dairy Products Sales report was released yesterday afternoon, ending for the week of February 25. Average spot prices for butter were at $2.44 per pound, slipping 0.1 cents from the previous week. Cheese blocks declined 2.5 cents to average $1.93 per pound. Barrels were at $1.62 per pound, falling 2.7 cents. Dry whey price moved 0.4 cent higher to 40.3 cents per pound. Grade A nonfat dry milk averaged $1.23 per pound, moving 1.8 cents lower from the previous week.
AVERAGE CLASS III PRICES
| 3 Month: | $17.65 |
| 6 Month: | $18.26 |
| 9 Month: | $18.77 |
| 12 Month: | $18.88 |
CHEESE
Milk is readily available across the country, and cheese plants are able to operate strong production schedules. Cream cheese production and demand have increased in recent weeks. Italian-type cheese demand is much stronger than cheddar. Retail and food service demand is steady. It's noted that demand from pizza producers has lightened and are below forecasted sales. Export demand is mixed. While Asian markets are interested, other major countries are not. There are reports of more barrels sales than block sales on the spot market, though there is more barrel inventory than block. The cheese markets are in the middle, neither bullish nor bearish. Nonfat dry milk futures saw no trading for March. Dry whey futures were 0.25 cents higher.
BUTTER
Butter plants are actively churning and stocking up in preparation for the spring holidays as cream is abundant in most areas. Most of the butter produced will either be put into frozen storage or used to meet contractual retail demand. Retail and food service demand is steady. It's reported that spot loads are harder to come by, at least in the East, due to processor's preferences to freeze in bulk. Butter futures settled 3 cents lower.
OUTSIDE MARKETS SUMMARY
Corn futures for March slipped 2.75 cents to settle at $6.3775. March soybeans were up 15.50 cents to close at $15.1975 per bushel. March soybean meal gained $2.00 to $489.30 per ton. March wheat moved 4.25 cents higher to end at $7.0125. April live cattle fell $1.02 to close at $164.10. April crude oil increased 46 cents to settle at $78.16 per barrel. The NASDAQ increased 83 points to 11,462, and the Dow jumped 341 points to 33,003.
