MILK
Class III milk futures have finished a very volatile week as emotions ran high as a result of the outside influence of the stimulus bill and what it could mean for the dairy industry. There have been a number of assessments as to what the bill actually contains. So, it is difficult to know what could be the impact. Any increase in demand is always positive to the market and will support prices to some extent. Right now, the stimulus bill has still not been signed. Next week could be another holiday-shortened, volatile week. Spot milk is showing some substantial discounts with some reports in the Midwest of prices as low as $8.50 below class. That is not unusual for this period of time as milk is diverted to manufacturing as schools are closed. However, it is a different year as many schools had already been closed with classes online. Thus, the impact is not completely due to schools closing, but also due to substantial volumes of milk coming to processing facilities.
AVERAGE CLASS III PRICES
| 3 Month: | $16.69 |
| 6 Month: | $17.08 |
| 9 Month: | $17.19 |
| 12 Month: | $17.10 |
CHEESE
For the holiday-shortened week, blocks declined 2 cents with 27 loads traded. Barrels declined a penny with seven loads traded. With all the volatility and movement in Class III futures, it is amazing that cheese prices settled lower for the week. This may be an indication of the position the market is in even though a significant amount of money has again been appropriated for food aid to the needy. Larger supply and the time of year during which overall demand slows may limit price impact. Dry whey increased 1.25 cents for the week with no loads traded.
BUTTER
For the week, butter increased 7 cents with 20 loads traded. Grade A nonfat dry milk price slipped 0.25 cent with four loads traded. There are some reports butter sales have dropped off noticeably this week. Retailers will wait until after the holidays to assess sales before placing orders to restock shelves.
OUTSIDE MARKETS SUMMARY
March corn gained 3.75 cents, closing at $4.51. January soybeans gained 4.75 cents, ending at $12.6350, with January soybean meal down $4.40 per ton, closing at $416.80. March wheat declined 2.75 cents, ending at $6.27. December live cattle gained $0.22, ending at $112.15. February crude oil gained $0.18, ending at $48.30 per barrel. The Dow gained 70 points, closing at 30,200, with the NASDAQ up 34 points, closing at 12,805.
