MILK
Milk futures did not move very much, making it difficult for traders to even take a minor profit out of the market if they were on the right side of it. Class III futures were steady to lower while Class IV futures were steady to higher with gains or losses limited to single digits. There is quite a variability of spot milk prices across the country with prices ranging from $0.50 to as much as $7.00 below class. It is very unusual to see spot milk prices with that much of a range. Even with the adverse weather across much of the country, milk and dairy products have been delivered albeit with delays in many cases. The weather will temper over the next week with things moving back to somewhat normal again, at least for a while.
AVERAGE CLASS III PRICES
| 3 Month: | $15.67 |
| 6 Month: | $16.55 |
| 9 Month: | $17.12 |
| 12 Month: | $17.43 |
CHEESE
Seasonal varieties of cheese and other specialty cheese have slowed in demand. Manufacturers report cheddar cheese movement is good and similar to previous years. Inventory is reported to be holding rather than increasing very much. Sellers have been adamant at moving supply rather than building inventory and it has accomplished that purpose. USDA will release the December Cold Storage report next week Wednesday which will provide an indication of what took place with supply and demand.
BUTTER
Cream remains widely available to the market keeping churns busy with some turning cream away due to already full schedules or the lack of employees due to weather or just a reduced workforce. Butter demand from retail outlets is steady while demand from the food service industry is weaker. Overall, domestic demand is good and continues to hold price at a higher than an earlier anticipated level.
OUTSIDE MARKETS SUMMARY
March corn closed down 1.25 cents per bushel at $4.4225, March soybeans closed down 21.50 cents at $12.0575 and March soybean meal closed down $12.40 per ton at $358.70. March Chicago wheat closed up .50 cent at $5.8250. February live cattle closed down $0.03 at $173.10. February crude oil is up $0.51 per barrel at $72.91. The Dow Jones Industrial Average is down 94 points at 37,267 with the NASDAQ is down 89 points at 14,856.
