MILK:
It was another day of ho-hum trade with trading activity very light as the limited volatility could not entice day traders to try to scalp the market. Friday's activity may be similar as buyers and sellers in the cash market may not be anxious to buy or sell aggressively. Milk production in California is reported to be improving but remains significantly below last year. The impact of bird flu on milk production has been significant and will linger for a while. Other Western states are showing milk production as steady to higher.
AVERAGE CLASS III PRICES:
| 3 Month: | $19.82 |
| 6 Month: | $19.36 |
| 9 Month: | $19.17 |
| 12 Month: | $18.98 |
CHEESE:
Cheese production is steady for most locations. Demand varies depending on the variety. Certain varieties of cheese are termed as tight. Some cheese plants indicate they are trying to locate extra spot milk supplies to keep full production schedules but are having difficulty finding some. Cheese buyers do not see the need to be aggressive at present.
BUTTER:
It is good to see buyers actively purchasing what has been coming to the market, but they are purchasing what is being offered and not bidding higher to get it. Manufacturers are moving supply attempting to limit inventory growth at the plant level. This will keep the butter price under pressure with limited upside price potential.
OUTSIDE MARKETS SUMMARY:
March corn closed up 3.25 cents per bushel at $4.9350, March soybeans closed up 2.25 cents at $10.3000 and March soybean meal closed down $1.40 per ton at $292.70. March Chicago wheat closed up 3.50 cents at $5.7775. April live cattle closed up $0.80 at $196.53. March crude oil is up $0.08 per barrel at $71.45. The Dow Jones Industrial Average is up 343 points at 44,711 with the NASDAQ up 296 points at 19,946.
