MILK
Class III milk futures took a beating today with nearby months nearly eliminating the gains of the past two days. The slight weakness in barrels triggered sales. The bounce back from the low during spot trading did little to generate any price support.
Prices will move higher but now is not yet the time. The South Dairy Trade report this week showed a greater volume of dairy products moving through port in Argentina from Jan. 16-31. There were 10,797.39 tons, which moved to 31 destinations. The average price was $3,252.56 per ton. Whole milk powder value increased by 0.7% to $3,360.97 per ton or $1.52 per pound. Skim milk powder gained 4.5% to $3,089.55 per ton or $1.40 per pound. Semi-hard cheese decreased 2.9% to $3,888.72 per ton or $1.76 per pound. Butter increased 3.4% to $4,581.68 to $2.08 per pound.
Dairy products moving through ports in Uruguay totaled 7,034.06 tons moving to 30 destinations at an average price of $3,286.75 per ton during the period from Feb. 16-29. Whole milk powder decreased by 5.6% to $3,236.41 per ton or $1.47 per pound. Skim milk powder increased 2.6% to $3,126.34 per ton or $1.42 per pound. Semi-hard cheese increased 0.2% to $4,765.89 per ton or $2.16 per pound. Hard cheese increased 13.4% to $5,393.65 per ton or $2.45 per pound. Butter increased 3.9% to $5,033.87 per ton or $2.28 per pound.
AVERAGE CLASS III PRICES
| 3 Month: | $16.29 |
| 6 Month: | $17.04 |
| 9 Month: | $17.53 |
| 12 Month: | $17.67 |
CHEESE
For the week, the block price increased a penny with 13 loads traded. The barrel price decreased by 4.50 cents with 23 loads traded. Dry whey gained 3.50 cents with no loads traded. Cheese prices held well today, but the slight weakness of blocks triggered aggressive selling of Class III futures. Buyers may have reached a threshold that make it difficult for prices to move much higher in the near term.
BUTTER
For the week, butter increased by 2 cents with eight loads traded. Grade A nonfat dry milk decreased by 0.75 cent with 11 loads traded. Price was not able to break above sideways trading range which may result in increased selling interest and price falling back to the lower end of the trading range. Strong churning activity and sufficient cream supply may keep sellers active as they wish to move supply.
OUTSIDE MARKETS SUMMARY
May corn closed up 3 cents per bushel at $4.3675, May soybeans closed up 3 cents at $11.9825 and May soybean meal closed down $2.70 per ton at $334.70. May Chicago wheat closed down 3.75 cents at $5.2850. April live cattle closed up $0.30 at $187.25. April crude oil is down $0.24 per barrel at $81.02. The Dow Jones Industrial Average is down 191 points at 38,715 with the NASDAQ down 155 points at 15,973.
