MILK:
Milk production is holding steady and should continue over the next few weeks. Farms have prepared for the adverse weather, keeping cows fed and comfortable. Most plants are receiving sufficient milk for bottling and manufacturing. Some indicate they would like to purchase more milk but indicate they are having difficulty finding spot milk for purchase. Some of this is due to plants having positioned themselves as net buyers and are now running into a minor problem as milk production is below a year ago. More plants have become net buyers with more looking for spot milk. Fluid milk demand has improved and demand for some cheese varieties has increased. Class III futures were under pressure after spot trading only to see some strength for a short time before falling back into the close. Class IV futures closed mixed with limited contracts traded.
AVERAGE CLASS III PRICES:
| 3 Month: | $19.68 |
| 6 Month: | $19.26 |
| 9 Month: | $19.12 |
| 12 Month: | $18.95 |
CHEESE:
Cheese prices may chop around for a time as buyers see no need to become aggressive and sellers want to limit inventory build. Demand for some varieties of cheese is improving, but overall demand remains below a year ago. This will limit the upside price potential in the near term.
BUTTER:
Butter may have found a level at which it will move sideways for a time. The low price generates buyer interest, while a bounce makes it attractive for sellers to move the supply. The level of cream available to churns will limit the upside, while it may build inventory more quickly than usual.
OUTSIDE MARKETS SUMMARY:
March corn closed up 5.75 cents per bushel at $5.0200, March soybeans closed up 2.50 cents at $10.3850 and March soybean meal closed down $2.10 per ton at $293.80. March Chicago wheat closed up 4.75 cents at $6.0475. April live cattle closed down $0.23 at $194.03. March crude oil is up $1.08 per barrel at $71.82. The Dow Jones Industrial Average is up 10 points at 44,556 with the NASDAQ up 14 points at 20,041.
