MILK
November Class III milk has fallen over $1 per cwt from the high reached last week. This does not mean that that level will not be achieved again, but it will make it a bit more effort to regain the losses. The milk market had been stable to lower for quite some time with more volatility surfacing now that holiday demand is here, and traders have turned more bullish. Class III milk futures in 2022 contracts have not moved much with the volatility being confined to closer months. Later contracts may hold until traders get better indications of demand moving through the holidays. Class IV futures did not gain as much as would have been expected due to the jump of butter price. It does indicate there is strong support developing under the market.
AVERAGE CLASS III PRICES
| 3 Month: | $17.98 |
| 6 Month: | $18.26 |
| 9 Month: | $18.31 |
| 12 Month: | $18.31 |
CHEESE
Block cheese reached to the top of the range and fell back again as sellers want to move product. Higher inventory will leave sellers wanting to move product at higher prices. Buyers will hold back waiting for lower prices to pick up supply for orders and expected demand. Buyers do not fear a tightening supply and do not need to chase prices higher. Manufacturers want to limit inventory build moving supply to the market quickly.
BUTTER
Butter is on a roll and is solidly trending higher. It was not expected to reach and exceed $1.90 or higher as quickly as it has, but now there is a strong possibility price will reach $2. Retail orders are improving as grocers are ordering early to hopefully have product on hand rather than take a chance on not receiving supply due to transportation issues.
OUTSIDE MARKETS SUMMARY
December corn gained 5.50 cents, ending at $5.4350. November soybeans closed 0.75 cent higher at $12.38 with December soybean meal down $0.30 at $326.90 per ton. December wheat fell 7.25 cents, closing at $7.5225. October live cattle gained $1.80, closing at $126.82. November crude oil gained $0.89, closing at $84.65 per barrel. The Dow gained 16 points, closing at 35,757, while the NASDAQ gained 9 points, closing at 15,236.
