MILK
Milk production continues to increase from the lows of the summer, but the decrease of cow numbers is keeping overall milk supply from becoming burdensome. Fluid demand has slowed due to schools being closed for Thanksgiving. That is not expected to create any problems for manufacturing as there is sufficient capacity to handle the milk. Consumer demand for milk remains strong. Plants is the Eastern regions are importing some milk due to demand outpacing local production. Milk is more available in the Central region with spot milk priced at class to $2.00 under class moving into the Thanksgiving period. Spot prices were substantially lower last year due to heavy milk supplies and limited gatherings for the holidays due to COVID-19. That will not be the case this year as families and friends will get together as usual in most cases. Dairy markets will be closed the rest of the week and will reopen again Sunday evening at 5 p.m. Central time.
AVERAGE CLASS III PRICES
| 3 Month: | $18.30 |
| 6 Month: | $18.61 |
| 9 Month: | $18.70 |
| 12 Month: | $18.74 |
CHEESE
For the holiday-shortened week, blocks remained unchanged with no loads traded. Barrels increased 0.50 cent with one load traded. Dry whey remained unchanged with one load traded. This was not much volatility for three days of trading but at least prices held. Some cheese plants are receiving discounted milk loads which is being balanced with available staff to process the milk. Cheese demand has been strong, Dairy Market News reported that some contracts feel that cheese market tones are on shaky ground. This is likely due to much of demand for the holidays having been packaged and shipped leaving reduced orders. However, cheese movement is expected to remain brisk during the next week or two for last minute demand.
BUTTER
For the week, butter price fell 5.75 cents with three loads traded. Grade A nonfat dry milk increased 0.75 cents with seven loads traded. Price fell back below $2.00 on Monday and remained there for the rest of this week. Cream supply is tight but sufficient to meet current production demand. Retail demand is strong as the holiday period approaches.
OUTSIDE MARKETS SUMMARY
December corn slipped 0.75 cent closing at $5.7975. January soybeans were down 6.50 cents, ending at $12.6650 with December soybean meal down $4.60 per ton to close at $357.60. December wheat fell 19.25 cents, ending at $8.3675. December live cattle jumped $2.50, closing at $137.90. January crude oil declined $0.11, closing at $78.39 per barrel. The Dow slipped 9 points, ending at 35,804 points, while the NASDAQ gained 70 points to close at 15,845 points.
