GENERAL OVERVIEW:
Class III futures closed lower for the week, while Class IV futures closed mixed compared to the previous week. The block cheese price declined during the week, while barrels held steady. There has not been a significant change in fundamentals during the week.
MILK:
The volatility in milk futures during the week, at times, had milk futures moving in the opposite direction compared to the movement of spot prices. Those are times during which we scratch our heads, wondering why. Short-term traders like volatility as they have a better chance of making a quick profit from the market, and there was no shortage of that.
The fluid milk sales report for December was released, showing that packaged milk sales were 1.2% higher than in December 2024. Whole milk sales were 4.6% above a year earlier. Flavored whole milk increased 8.2%; reduced-fat milk sales were steady. Low-fat milk declined 4.2%; fat-free skim milk declined 5.5%; flavored fat-reduced milk declined 1.2%; buttermilk increased 0.7%; and other fluid milk sales increased 3.2%. Organic whole milk sales decreased 1.1%; organic flavored whole milk increased 13.0%; organic reduced fat decreased 2.5%; organic low fat decreased 2.5%; organic low fat decreased 19.7%; organic fat-free declined 3.6%; organic flavored fat-reduced increased 18.0%, while other organic fluid milk sales decreased 11.4%. The markets will be closed on Monday for Presidents Day.
AVERAGE CLASS III PRICES:
| 3 Month: | $15.82 |
| 6 Month: | $16.50 |
| 9 Month: | $16.98 |
| 12 Month: | $17.10 |
CHEESE:
For the week, blocks declined 8.50 cents with 10 loads traded. The weekly average price is $1.4110. Barrels remained unchanged with no loads traded. The weekly average price is $1.44. Dry whey declined a penny with one load traded. The weekly average price is 72.20 cents. The block cheese price declined each day this week.
BUTTER:
For the week, butter declined 0.50 cent with 113 loads traded. The weekly average price is $1.6705. It has been a long time since this volume of loads has been traded over the course of one week. The Grade A nonfat dry milk price declined 4.00 cents with 17 loads traded. The weekly average price is $1.5995.
OUTSIDE MARKETS SUMMARY:
March corn closed up .50 cent per bushel at $4.3175, March soybeans closed down 4.25 cents at $11.3300 and March soybean meal closed up $1.30 per ton at $309.20. March Chicago wheat closed down 3.75 cents at $5.4875. April live cattle closed down $0.03 at $240.63. March crude oil is up $.02 per barrel at $62.86. The Dow Jones Industrial Average is up 49 points at 49,501, with the NASDAQ down 50 points at 22,547.
