A mixed week for the dairy markets. Cash cheese barrels fell 4 cents for the week marking the fifth consecutive week of declines. Blocks dropped 4.25 cents for the week falling below $1.30 for the first time since last September. However, Class III futures seem to be headed in the other direction with the June through December 2010 contracts gaining an average 34 cents on the week. More indication the traders expect cheese to turn around in the not-too-distant future.
The February base milk prices were also mixed when compared to January. Class II base for February production is $15.65 per hundredweight, 43 cents more than January and $5.45 better than February of 2009. The Class III base price for February is $14.28, down 22 cents from last month but $4.97 better than a year ago. Class IV base $12.90, down 95 cents from January but $3.45 higher than February, 2009. Component prices per pound for the month: butterfat $1.4404; protein $2.7066; nonfat solids $.9043; other solids $.1992.
One note of interest, looking at the futures as they are right now, this will be the highest milk price we see until July.
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