Dairy Market News reports milk production in the Northeast region is increasing. There are reports that intakes are heavy and with plenty of milk for processing. It is still early in the spring flush period and may indicate what is to come. Last year, the Northeast Federal Order sought and received permission to dump milk for a period. The same may take place this year if production continues to improve. Other regions are beginning to see milk production increase as the spring flush comes to fruition. Bottling is back to normal as educational institutions have cycled through spring breaks. There was little reason today for milk futures to change much with underlying cash prices showing little change.
AVERAGE CLASS III PRICES:| 3 Month: | $17.77 |
| 6 Month: | $17.80 |
| 9 Month: | $18.06 |
| 12 Month: | $18.01 |
Cheese demand varies depending on location and variety. Unfortunately, demand for fresh cheddar cheese is slower than desired. Fresh cheddar cheese is what is traded on the daily spot market and is used as part of the equation to set milk prices. Inventory is below a year ago, but did show an increase during February. Inventory usually increases during the first half of the year. That was not the case last year, as inventory decreased during some of the early months. There is some anticipation that cheese prices may have set a bottom, but that remains to be seen.
BUTTER:There is little expectation price will see much upside potential. Inventory has been growing significantly. Buyers have been increasing ownership on price weakness as they build supply for later demand. There have been 28 loads of butter traded so far this week. Retail butter demand is improving as preparations for the Easter season take place.
OUTSIDE MARKETS SUMMARY:May corn closed down 6.50 cents per bushel at $4.5125, May soybeans closed down .75 cent at $10.0100 and May soybean meal closed down $1.50 per ton at $293.60. May Chicago wheat closed down 8.00 cents at $5.3525. June live cattle closed up $0.70 at $203.03. May crude oil is up $0.95 per barrel at $69.95. The Dow Jones Industrial Average is down 133 points at 42,455 with the NASDAQ down 373 points at 17,899.
