MILK
December Class III futures have not yet found a bottom. It is anyone's guess as to where cheese prices will find a bottom. That continues to keep milk futures on the defensive. Class III milk futures from December through the whole of next year are ranging in the $16's. Prices for next year do not look very exciting, but neither did they look that way at the beginning of this year. Volatility will likely be heightened again next year, but maybe not as much as this year. The Global Dairy Trade auction trade-weighted average showed an increase of 1.8% on Tuesday's auction. Anhydrous milk fat increased 4.1% to $4,175 per metric ton or $1.89 per pound. Butter increased 0.4% to $3,838 per metric ton or $1.74 per pound. Cheddar cheese price declined 3.5% to $3,641 per metric ton or $1.65 per pounds. Lactose fell 18.8% to $887 per metric ton or $0.40 per pound. Skim milk powder declined 2.5% to $2,799 per metric ton or $1.27 per pound. Whole milk powder increased 1.8% to $3,077 per metric ton or $1.38 per pound.
AVERAGE CLASS III PRICES
| 3 Month: | $18.82 |
| 6 Month: | $17.56 |
| 9 Month: | $17.26 |
| 12 Month: | $17.17 |
CHEESE
Cheese buyer interest has not been affected by the positive news over the past week of two company trials that show positive results for a coronavirus vaccine. After the initial jump of futures last week, there has been no support coming from underlying cash. In fact, it seems as if the cheese market turned more bearish. The realization is that it will take substantially longer to increase demand from the food service industry with general demand moving through the holiday season. Overall demand generally slows through the early months of the year. It is doubtful the pending increase in milk supply will be able to be utilized without a significant increase of inventory.
BUTTER
Price continues to trickle down without a change in market direction. The lack of price strength during this time of year does not bode well for the market. Price could be substantially lower during the early part of next year. Butter futures continue to hold a premium to cash in the hopes that price will move higher through the first half of next year. However, the premium being exhibited is not very exciting.
 |
| #completedairyprogram |
.jpg)
