MILK
Milk futures were unchanged to lower across the board. Underlying cash prices did not provide any reason for traders to buy into the market. The February Federal Order class prices were released with the Class II price at $20.53, an increase of $0.49 from January. The Class III price was $16.08, an increase of $0.91 from the previous month. The Class IV price was $19.85, an increase of $0.46. This will help income slightly, but certainly not enough to get too excited over. It will remain a struggle to pay the bills. The South Dairy Trade report was released which shows the prices and increases of prices from the previous two-week period.
There were 3,722.70 tons of dairy products moving through ports in Argentina to 17 destinations over the period from January 1-15. The price of Whole milk powder increased 0.9% to $3,338.97 per ton or $1.51 per pound. Skim milk powder decreased by 5.8% to $2,956.36 per ton or $1.34 per pound. Semi-hard cheese increased 5.8% to $4,002.99 per ton or 1.82 per pound. Hard cheese price increased 6.2% to $6,493.34 per ton or $2.95 per pound. Butter increased 4.3% to $4,429.20 per ton or $2.01 per pound.
Dairy products moving through ports in Uruguay totaled 6,707.22 tons to 30 destinations. Whole milk powder increased 2.0% to $3,428.67 per ton or $1.56 per pound. Skim milk powder increased 1.3% to $3,046.65 per ton. Semi-hard cheese price decreased 4.6% to $4,754.96 per ton or $2.16 per pound. Hard cheese fell 20.00% to $4754.96 per ton or 2.16 per pound. Butter increased 1.7% to $4,847.45 per ton or $2.20 per pound.
AVERAGE CLASS III PRICES
| 3 Month: | $17.50 |
| 6 Month: | $17.88 |
| 9 Month: | $18.17 |
| 12 Month: | $18.17 |
CHEESE
Cheese prices are holding but buyers have not been very aggressive over the past few days. There seems to have been increased interest after January showed a decline in milk production and cow numbers. However, cheese is available for demand and may limit upside potential.
BUTTER
Further weakness in butter today is being viewed as a price correction due to sellers wanting to move supply. Once that has been completed and the selling pressure subsides, buyers might be more aggressive again. Price is not expected to decline very much.
OUTSIDE MARKETS SUMMARY
May corn closed up 5.00 cents per bushel at $4.2850, May soybeans closed up 4.50 cents at $11.4525 and May soybean meal closed up $2.60 per ton at $327.50. May Chicago wheat closed down 9.50 cents at $5.7475. April live cattle closed down $1.60 at $186.13. April crude oil is down $0.55 per barrel at $78.32. The Dow Jones Industrial Average is down 23 points at 38,949 with the NASDAQ down 88 points at 15,948.
