MILK
Milk output is steady for the most part, and it's reported that spring levels are ahead. Fluid milk demand is meeting seasonal expectations. Cheesemakers are buying spot loads $12 under Class III. Cream is reported to be tighter. The past 2 weeks have shown a 10% decline in cream. Class III futures were 10 cents lower to 3 cents higher, while Class IV futures were 4 cents lower to 9 cents higher.
AVERAGE CLASS III PRICES
| 3 Month: | $18.30 |
| 6 Month: | $18.65 |
| 9 Month: | $19.00 |
| 12 Month: | $19.01 |
CHEESE
There is plenty of milk supply for cheese makers, making plants run busy production schedules. Retail and food service demand is steady, while inventory is steadily increasing. Retail cheddar and Italian-type cheeses have seen some drop in production lately. Spot loads are available and overall spot market demand is steady. Export demand is mixed. While Asian and Mexican markets have steady demand, it's hard to compete with GDT pricing and European prices. Prices between barrels and blocks had a 27-cent difference last week, but by Friday there was only a penny difference.
BUTTER
Cream supplies have slightly tightened, though this hasn't stopped butter plants from running full production schedules. Producers are freezing most of their supply and sitting comfortably on inventory. Food service demand is steady, while retail demand has been steady to weaker due to higher store prices. Despite this, overall demand is stronger due to the spring holidays up and coming. Exports have been steady, though "current domestic prices are taking away from competitiveness". Unsalted butter inventory is higher than salted butter.
OUTSIDE MARKETS SUMMARY
May corn gained 6.25 cents closing at $6.3275. May soybeans moved 2.25 cents higher to $14.9150with May soybean meal down $4.40 per ton closing at $474.00. May wheat declined 3.75 cents ending at $6.9900. April live cattle increased $0.80 closing at $162.35. April Crude oil was up $0.55 closing at $68.16 per barrel. The Dow increased 351 points ending at 32,226 while the Nasdaq gained 275 points closing at 11,708.
