MILK
Some areas report milk production somewhat flat for the week. Others indicate moderate growth. In either case, there are plentiful milk supplies available for manufacturing and bottling needs. Specialty holiday production of products such as eggnog is finished with production already changed back to regular items. Retail demand has been filled through the end of the year, for the most part, with retailers waiting to see how demand will be during the period before reordering anything other than usual amounts for early next year. There are many unknowns for the future and how the stimulus is going to affect dairy prices and demand. This has created much volatility and will continue to do so until more of the provisions are understood. The prospect for higher milk prices will keep the incentive for farms to hang onto cows. Dairy cattle slaughter for November totaled 229,400 head. This was 29,500 head fewer than October and 26,700 head fewer than November 2019. This is the lowest slaughter since August and the lowest November slaughter since 2014. Dairy markets will close at 12 p.m. Central Standard Time on Thursday and will open at the regular time Sunday night at 5 p.m. CST.
AVERAGE CLASS III PRICES
| 3 Month: | $16.82 |
| 6 Month: | $17.18 |
| 9 Month: | $17.28 |
| 12 Month: | $17.32 |
CHEESE
Cheddar cheese production is strong, which was evident on the November Cold Storage report. This may change the impact on the market a bit if demand for food assistance requires increased amount of cheese. There are greater stocks than there was after the shut down during April of this year. Cheese manufacturers are switching some production to cheese varieties that are more suited for aging programs. There is limited expectation of a significant increase of demand from the food service industry anytime soon. The decline of cheese prices Wednesday did not make closer months turn and fall lower into negative territory as traders hold out hope of a surge of demand early next year due to government programs.
BUTTER
There have been some reports a few butter plants are planning to close for a few days this weekend. This is concerning to cream suppliers as they scramble to find alternative places that will take extra cream. This is causing cream prices to be heavily discounted in an attempt to make it attractive for another plant to take it. According to the cold storage report, butter inventories will end the year quite a bit higher than last year.
OUTSIDE MARKETS SUMMARY
March corn gained 3.75 cents, closing at $4.4725. January soybeans gained 11.50 cents, closing at $12.5875, with January soybean meal up $6.20 per ton, closing at $421.20. March wheat jumped 12.75 cents, closing at $6.2975. December live cattle jumped $1.60, closing at $111.92. February crude oil gained $1.10 per barrel, ending at $48.12. The Dow gained 114 points, closing at 30,130, while the NASDAQ declined 37 points, ending at 12,771.
