MILK
USDA reduced its estimate for milk production this year to 227.8 billion pounds, down 300 million pounds from its August estimate. Milk production for 2022 is estimated at 230.6 billion pounds, down 600 million pounds from the previous estimate. This is a little surprising since it raised estimated milk prices. This idea likely is the result of anticipated heavier culling and less-than-optimal feed quality in some areas. This would reduce milk output, resulting in potentially higher prices. Class III price was raised 10 cents to $16.65 this year and raised 30 cents next year to $16.45. Price next year being lower than this year is certainly not what we would like to see. It is a long way in the future, and much can change. We hope the change will be better and not worse than it already is. Class IV price was raised 40 cents to an average of $15.55 this year and raised 75 cents next year to $16.05. The all-milk price was raised 20 cents this year and raised 55 cents next year. U.S. Sen. Kirsten Gillibrand, chair of the Senate Agriculture Subcommittee on Livestock, Dairy, Poultry, Local Food Systems, and Food Safety and Security, will hold a hearing to address milk pricing improvements and reforms. Gillibrand will convene a panel of witnesses to receive testimony on the growing need to modernize the Federal Milk Marketing Order System to bring the nation's dairy pricing into the 21st-century market.
AVERAGE CLASS III PRICES
| 3 Month: | $17.08 |
| 6 Month: | $17.25 |
| 9 Month: | $17.35 |
| 12 Month: | $17.44 |
CHEESE
Cheese prices performed well this week. Blocks gained 5.50 cents with no loads traded. Buyers were looking for cheese, but there was none to be found during spot trading. Barrels increased 8.50 cents with six loads traded. Dry whey gained 4.50 cents with four loads traded. USDA raised the estimated cheese price this year by a half-cent to an average of $1.64 on the World Agricultural Supply and Demand report. They raised the price next year by 1.50 cents from August to an average of $1.6550 per pound. Dry whey price was left unchanged this year at 55.50 cents and left unchanged at 50 cents per pound next year.
BUTTER
USDA raised its estimated butter price this year to $1.69 per pound, up 4.50 cents from the August estimate. They raised the 2022 estimate to $1.73, an increase of 7 cents from August. Nonfat dry milk price was raised 2 cents this year to $1.2250 and raised next year to $1.27, up 6 cents from the August estimate. For the week, butter price declined 1.25 cents with 24 loads traded. Grade A nonfat dry milk increased 1.75 cents with 12 loads traded.
OUTSIDE MARKETS SUMMARY
December corn gained 7.50 cents, closing at $5.1750. November soybeans jumped 16 cents, closing at $12.8650, with October soybean meal gaining $4.40 per ton, closing at $339.50. December wheat declined 3.75 cents, closing at $6.8850. October live cattle declined $0.32, ending at $123.42. October crude oil jumped $1.58, closing at $69.72 per barrel. The Dow fell 272 points, ending at 34,608, while the NASDAQ fell 133 points, closing at 15,115.
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