Thursday Closing Dairy Market Update - Global Dairy Trade Gains 3.7%

MILK:

Traders did not find anything to get excited about from the price movements in the spot market. Class III futures showed mixed settlement prices, but contracts were lower at the close of the trading session. Class IV futures were hit with double-digit losses. The butter price weakness continues to put pressure on Class IV contracts. Milk production is not overwhelming but sufficient for demand. The Global Dairy Trade Auction trade-weighted average increased by 3.7%. Anhydrous milk fat gained 2.4% to $6,766 per metric ton or $3.07 per pound. The butter price increased 3.4% to $7,222 per metric ton or $3.28 per pound. Buttermilk powder slipped 0.4% to $3,092 per metric ton or $1.40 per pound. Cheddar cheese increased by 3.7% to $5,025 per metric ton or $2.28 per pound. Lactose jumped 17.7% to $1.050 per metric ton or $0.48 per pound. Mozzarella slipped 0.1% to $4,157 per metric ton or $1.89 per pound. Skim milk powder increased 4.7% to $2,835 per metric ton or $1.29 per pound. Whole milk powder increased 4.1% to $4,169 per metric ton or $1.89 per pound.

AVERAGE CLASS III PRICES:

3 Month:	$19.91
6 Month:	$19.47
9 Month:	$19.30
12 Month:	$19.08

CHEESE:

Cheese demand is picking up in most areas but is still running behind a year ago. This leaves sufficient supply for demand at present. Cheese production continues to run below a year ago for American and total cheese. This could make for some interesting price movement if demand increases and exceeds a year ago. That is not expected at this time but changes in the market environment will happen as the year progresses. The political factors may significantly influence this year and maybe the next four years.

BUTTER:

There is no indication of a bottom in butter. Buyers are picking up supply but see no need to be aggressive and continue to purchase on price weakness. Cream supply remains abundant with numerous plants turning down spot offers that are being received daily. This will keep pressure on the butter price as strong production will provide sufficient supply to the market.

OUTSIDE MARKETS SUMMARY:

March corn closed up 2.00 cents per bushel at $4.9525, March soybeans closed up 3.50 cents at $10.6050 and March soybean meal closed down $1.90 per ton at $306.40. March Chicago wheat closed up 15.50 cents at $5.8775. April live cattle closed down $4.53 at $196.78. March crude oil is down $0.42 per barrel at $70.61. The Dow Jones Industrial Average is down 126 points at 44,748 with the NASDAQ up 100 points at 19,792.