MILK
It was a good were for both Class III milk futures. Substantial price gains were realized. Nearby Class III contracts posted gains of about $0.80. Class IV futures showed limited gains. The May Class III milk contract traded above $18.00 this week but was not able to close at that level. The weakness of nearby Class III futures did not change the market with underlying cash showing some weakness but nothing to change the current uptrend. Next week will be the key to whether the market will trade at a higher level or if it will fall back as prices retrace. Milk production has been running slightly below a year ago but is keeping sufficient supply for demand for both bottling and manufacturing. The increase in prices has not been due to a shortage of supply but more of a perception of potential tightening if milk prices remain low. The other side of that is that the potential for higher milk prices will keep production strong and cow numbers stable as farmers will want to keep the stalls full.
AVERAGE CLASS III PRICES
| 3 Month: | $16.26 |
| 6 Month: | $16.92 |
| 9 Month: | $17.41 |
| 12 Month: | $17.69 |
CHEESE
For the week, blocks gained 11.25 cents with 29 loads traded. Barrels increased 8 cents with 24 loads traded. Dry whey gained 6.50 cents with three loads traded. Traders have become more bullish on the market, but they continue to remain cautious as fundamentals have not become bullish, but rather more neutral. The increase in dry whey provided good support under the market. The increase in the dry whey price added 39 cents to the Class III price calculation just in itself.
BUTTER
For the week, butter declined 1.50 cents with eight loads traded. Grade A nonfat dry milk increased by 0.50 cent with nine loads traded. The price held most of the strong gains of the previous week, keeping the market in a positive position. Demand is generally steady for the food service industry but is seeing some growth at the retail level.
OUTSIDE MARKETS SUMMARY
March corn closed down 4.50 cents per bushel at $4.4275, March soybeans closed down 14.75 cents at $11.8850 and March soybean meal closed down $4.90 per ton at $356.80. March Chicago wheat closed down 1.75 cents at $5.9975. April live cattle closed up $0.58 at $183.75. March crude oil is down $1.51 per barrel at $72.31. The Dow Jones Industrial Average is up 135 points at 38,654 with the NASDAQ up 267 points at 15,629.
