MILK
The first half of the week was positive for milk futures, but the optimism traders had with the milk production report quickly dissipated without support of underlying cash. April and May Class III futures made new contract lows as cheese prices fell back. All categories showed a decline in price this week except barrels.
The milk production report showed lower production in February but that was already absorbed into the market. The GDT auction took place earlier this week and showed the trade-weighted average declining 2.8% from the previous event. There were 19,655 metric tons (mt) sold during the event. Anhydrous milk fat price increased 2.5% to $6,794 mt or $3.08 per pound. Butter decreased by 1.4% to $6,408 mt or $2.91 per pound. Cheddar cheese price decreased 1.9% to $4,192 mt or $1.90 per pound. Lactose decreased 4.4% to $778 mt or $0.35 per pound. Mozzarella decreased 1% to $3,905 mt or $1.77 per pound. Skim milk powder decreased 4.8% to $2,517 mt or $1.14 per pound. The whole milk powder price decreased 4.2% to $3,143 mt or $1.43 per pound.
AVERAGE CLASS III PRICES
| 3 Month: | $16.05 |
| 6 Month: | $16.81 |
| 9 Month: | $17.37 |
| 12 Month: | $17.55 |
CHEESE
For the week, blocks declined 7.75 cents with 24 loads traded. Barrels were unchanged from last Friday with three loads traded. Dry whey price declined 5 cents with seven loads traded. It turned out to be a negative week, even though traders began the week with a fair amount of optimism. Action this week indicates it may be a while before milk prices trend higher.
BUTTER
For the week, butter declined 1.50 cents with six loads traded. Grade A nonfat dry milk price declined by 5.50 cents with 13 loads traded. Price is expected to remain in range for much of the year's first half. USDA will release the February Cold Storage report on Monday indicating the amount of butter in storage and how much was added during the month.
OUTSIDE MARKETS SUMMARY
May corn closed down 1.50 cents per bushel at $4.3925, May soybeans closed down 19.50 cents at $11.9250 and May soybean meal closed down $5.20 per ton at $339.10. May Chicago wheat closed up 8 cents at $5.5475. June live cattle closed down $1.60 at $182.90. May crude oil is down $0.44 per barrel at $80.63. The Dow Jones Industrial Average is down 305 points at 39,476 with the NASDAQ up 27 points at 16,429.
