MILK
Class III futures settled 8 to 24 cents higher thanks to increased cheese prices. Class IV saw barely any movement. Farm level milk output has increased, with reports indicating production is higher versus January. Class I demand has been stable. Milk offers are as low as $12 under Class III. Bottling demand has been strong. Cream and condensed milk are readily available.
AVERAGE CLASS III PRICES
| 3 Month: | $17.83 |
| 6 Month: | $18.37 |
| 9 Month: | $18.78 |
| 12 Month: | $18.85 |
CHEESE
The average price for spot barrels for this past week was at $1.62 per pound, just 0.3 cents higher. Blocks were at $1.94 per pound, moving 1.4 cents higher. Dry whey averaged at 40.9 cents per pound, a 0.6 cent increase. Milk is available and cheese manufacturers are fulfilling strong production schedules. Cream cheese production and demand have continued to increase these past few weeks. On the Eastern side, Italian-type cheese is much stronger than demand for cheddar. Retail and food service demand is steady. While cheese production is active, stores are not getting ahead of processors. It's reported that cheesemakers are keeping storage at a minimum. Export demand is mixed, with Asian markets being mildly more interested compared to other countries. Barrels continue to outpace blocks, though barrel inventory is heavier than blocks.
BUTTER
Spot butter price was averaged at $1.94 per pound, which was a slight increase from the week's prior average. Grade A nonfat dry milk price averaged $1.20 per pound, falling 2.8 cents. Cream is available, and with cream cheese production slowing up a bit, leaving more for butter producers. Plants are running busy production schedules. Demand is steady to lighter. Inventories are sitting comfortably, though there are some areas where it's hard to find spot loads. Retail demand has declined. It's reported that sales are below what was predicted. Salted butter outpaces unsalted butter inventories.
OUTSIDE MARKETS SUMMARY
March corn fell 16 cents to end at $6.1850. March soybeans declined 6.75 cents to settle at $15.2000 per bushel. Soybean meal for March was up $0.50 cents to $498.90 per ton. Wheat futures for March moved 21 cents lower to settle at $6.5350 per bushel. April crude oil fell $1.12 closing at $75.54 per barrel. Live cattle futures for April declined $0.65 closing at $164.80. The NASDAQ fell 237 points to $11,338. The Dow fell 543 points to 32,254.
