MILK
Traders had nothing to get excited about today, which left trade volatility subdued and prices mixed. The strength in nearby Class III futures was not a matter of traders thinking underlying spot prices will increase, but more short covering into the weekend. The strength of barrels was mostly offset by the weakness of blocks. The Global Dairy Trade auction took place earlier in the week and showed an increase of 2.3 percent for the trade weighted average from the previous event. Anhydrous milk fat increased 4.3 percent to $5,842 per metric ton or $2.65 per pound. Butter increased 5.8 percent to $5,906 per metric ton or $2.68 per pound. Cheddar cheese increased 1.0 percent to $4,217 per metric ton or $1.91 per pound. Mozzarella cheese decreased 3.3 percent to $3,830 per metric ton or $1.74 per pound. Lactose increased 1.3 percent to $760 per pound. Skim milk powder gained 1.2 percent to $2,638 per metric ton or $1.20 per pound. Whole milk powder increased 1.7 percent to $3,352 per metric ton, or $1.52 per pound.
AVERAGE CLASS III PRICES
| 3 Month: | $15.61 |
| 6 Month: | $16.51 |
| 9 Month: | $17.10 |
| 12 Month: | $17.42 |
CHEESE
For the week, block cheese was hit the hardest with the price declining 11.50 cents with 21 loads traded. Barrels gained 2.25 cents with 16 loads traded. Dry whey slipped 0.25 cent with 11 loads traded. With the decline of blocks this week, it is surprising Class III milk futures did not fall much more than they had. The choppy market leaves futures in a narrow range providing traders with little movement to try and take profits.
BUTTER
For the week, butter declined 2.25 cents with 33 loads traded. Grade A nonfat dry milk declined a penny with 15 loads traded. Price is about in the middle of the price range it has been in since early November. Price remains higher than it was a year ago and hopefully will remain that way. However, with inventory higher to the end of the year and butter production currently strong, Price could move back into the range of last year over time.
OUTSIDE MARKETS SUMMARY
March corn closed up 1.50 cents per bushel at $4.4550, March soybeans closed down .25 cent at $12.1325 and March soybean meal closed down $4.80 per ton at $356.50. March Chicago wheat closed up 7.75 cents at $5.9325. February live cattle closed down $0.45 at $174.38. March crude oil is down $.42 per barrel at $73.53. The Dow Jones Industrial Average is up 395 points at 37,864 with the NASDAQ is up 255 points at 15,311.
