MILK
The noteworthy news stemming from the Central region is that there are reports that plant staff and driver shortages that have plagued the industry for some time have actually improved recently. However, overall, these issues will be ongoing for an extended period. This is also prevalent in many other industries as well and not just confined to dairy. Both bottling and manufacturing plants continue to receive sufficient quantities of milk to keep plants operating on full schedules. USDA reduced beginning commercial stocks on a fat basis for 2022 to 14.9 billion pounds. This is a reduction of 600 million pounds from their October estimate. A big reason for this is the strong butterfat exports we have been seeing all year. Ending commercial stocks were reduced 600 million pounds to an estimate of 14.7 billion pounds for 2022. Exports on a fat basis were raised 400 million pounds to 11.4 billion pounds. The downside is marketings were reduced 1.6 billion pounds to an estimate of 227.0 billion pounds for next year. These are estimates and there is a long way until the end of 2022 during which these numbers may change significantly.
AVERAGE CLASS III PRICES
| 3 Month: | $18.25 |
| 6 Month: | $18.49 |
| 9 Month: | $18.58 |
| 12 Month: | $18.63 |
CHEESE
Block cheese might be at a crossroads with price back up at the top end of the trading range that it has been in for the past year. The key will be whether buyer interest will be strong enough to push price higher. Supply is sufficient for demand, keeping the market satisfied. However, the price for cheddar cheese on the world market is significantly higher than the U.S. price. This should spur exports and keep product moving. Some of the problem is being able to ship it out efficiently and on time. Traders are nervous about the potential of a price retracement again.
BUTTER
Increasing demand for butter both domestically and internationally is reducing inventory as demand is improving as we move to the end of the year. Inventory seems to be decreasing more rapidly with weekly butter stocks for the first week of November showing a decline of 8.7 million pound or 18%.
OUTSIDE MARKETS SUMMARY
December corn gained 0.25 cent, closing at $5.6950. November soybeans gained 8.75 cents, closing at $12.1225, with December soybean meal up $2.10 per ton, closing at $344.50. December wheat gained 9.50 cents, ending at $8.1250. December live cattle slipped $0.12, closing at $131.87. December crude oil gained $0.25, ending at $81.59. per barrel. The Dow declined 159 points, closing at 35,921, while the NASDAQ gained 82 points, closing at 15,704.
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