Milk:
There is sufficient milk to satisfy all processing and bottling needs. Demand from school accounts is variable due to different policies implemented by each school system. Milk that is not being consumed in school is being mostly consumed at home. I write mostly because children will have a larger choice of beverages at home and many times the choice is something other than milk. Maybe not for breakfast, but for lunch. Weather has been -- and continues to be -- good for milk production, which is showing up with increasing milk receipts at the plant level. Milk production during November might have been substantially higher than a year earlier due to higher cow numbers and increasing production per cow. Spot milk prices this week have been recorded from $4.00 to $8.00 under Class III. Over Thanksgiving, there were some reports of spot milk prices around a $10.00 discount. This does not bode well for spot milk prices for the upcoming end of year holidays. Discounts are generally higher for spot milk during the Christmas season. Remember to contact your FSA office to sign up for the Dairy Margin Coverage program for next year. If you had already signed up for the full five years, you still need to sign up and pay the required fee. If you are not in the full program, you need to sign up by Dec. 11.
Average Class III Prices:
| 3 Month: | $15.83 |
| 6 Month: | $16.28 |
| 9 Month: | $16.51 |
| 12 Month: | $16.67 |
Cheese:
For the week, blocks fell 9.50 cents with 8 loads traded. Barrels declined 2.25 cents with 23 loads traded. Dry whey increased 3.25 cents with 5 loads traded. Cheese prices may have finished the washout phase and are moving in line with the fundamentals of supply and demand. The market tone is weak, but prices are at a level that may make it attractive for buyers. Some purchasing is being done for first quarter demand as well as to rebuild inventory. Dry whey price is now at the highest level it has been since Feb. 22, 2019.
Butter:
Retail demand continues to remain strong as the holidays approach. Butter movement for Thanksgiving was good through retail channels. The recent restrictions and closures of restaurants for a period of time again will eventually trickle back through the market which may put pressure on prices again. For the week, butter gained 12 cents with 34 loads traded. Grade A nonfat dry milk price gained 5.25 cents with 25 loads traded.
Outside Markets Summary:
December corn declined 5.50 cents, ending at $4.17. January soybeans declined 5.25 cents, closing at $11.63 with December soybean meal down $4.00 per ton, closing at $388.80 per ton. December wheat declined 5.25 cents, closing at $5.6650. December live cattle declined $0.72, ending at $108.87. January crude oil settled at $46.26, up $0.62 per barrel. The DOW gained 249 points, closing at 30,218 while the NASDAQ gained 87 points, closing at 12,464.
