GENERAL OVERVIEW:
Friday was a disappointing day for butter in both the cash market and the futures market, however the week overall made big strides towards higher prices. Cheese also had a positive week, gaining 3-4 cents from last week's average.
MILK:
Class III Milk futures had a volatile week, peaking on Wednesday with a close of $17.64 but returning to Monday levels today, closing within 4 cents of Monday's close at $16.32. Class IV remained relatively flat all week with no new news to drive the market higher or lower. On Thursday, the USDA released the Dairy Products report, which showed higher output for nearly every dairy product outside of frozen yogurt, regular ice cream (hard) and Nonfat Dry Milk for human consumption. The demand for dairy products is there in value-added products such as cheese and butter, and the market has slowly started to pay attention. Milk production is an uphill battle as we enter spring with more availability on an already saturated market, but processed products and exports will help support already low prices.
AVERAGE CLASS III PRICES:
| 3 Month: | $16.88 |
| 6 Month: | $17.47 |
| 9 Month: | $17.79 |
| 12 Month: | $17.70 |
CHEESE:
For the week, blocks increased 3.10 cents with 10 loads traded. The weekly average price is $1.5770. Barrels increased 3.00 cents with one load traded. The weekly average price is $1.5620. Dry Whey decreased 0.80 cents with one load traded. The weekly average price is 63.20 cents.
BUTTER:
For the week, butter increased 23.05 cents with 92 loads traded. The weekly average price is $2.0625. Grade A nonfat dry milk decreased 1.35 cents with 59 loads traded. The weekly average price is $1.6640.
OUTSIDE MARKETS SUMMARY:
May corn closed up 7.00 cents per bushel at $4.6050, May soybeans closed up 21.50 cents at $12.0075 and May soybean meal closed up $7.90 per ton at $317.20. May Chicago wheat closed up 33.00 cents at $6.1675. April live cattle closed down $3.95 at $234.58. April crude oil is up 9.67 per barrel at $90.68. The Dow Jones Industrial Average is down 453 points at 47,501 and the NASDAQ is down 361 points at 22,387.
