Current cheese and butter prices stable The cheese market is struggling to maintain prices in the face of seasonally heavy volumes of offerings at the Chicago Mercantile Exchange. However, cool weather in much of the U.S. has resulted in a rebound in butterfat and protein levels. USDA reports that churning activities are moderate to heavy in the West and that there is plenty of frozen butter available to the market.
Current demand is fair to good.
I have heard of a number of opportunities for dairy producers to lock in milk prices for 2001. Various cooperatives are offering fixed price contracts for milk. The contracts I have heard about are in relation to the Class III price. So, what will the Class III price average in 2001. Most analysts expect the Class III price will be higher in 2001 due to a slower rate of growth in the milk supply.