MILK
Milk futures have shown some incredible gains over the past four days, fueled by the announcement by USDA of over $450 million being made available to purchase food for programs to aid in the purchase of products from underserved farmers and ranchers. This received a similar reaction as the Farm to Families Food Box program last year, but it certainly is not on the same level. Applications will be taken until April 2022 with those rewarded contracts having up to two years to fulfill those obligations. This is not a short-term event and is not specifically targeted for dairy products but many types of food products. The Global Dairy Trade auction took place Tuesday with the trade-weighted average increasing 1.4%. Anhydrous milk fat increased 3.0% to $6,668 per metric ton or $3.02 per pound. Butter increased 4.6% to $5,791 per metric ton or $2.63 per pound. Buttermilk powder gained 2.9% to $3,620 per metric ton or $1.64 per pound. Cheddar cheese increased 1.0% to $5.220 or $2.37 per pound. Lactose increased 3.5% to $1,339 per metric ton or $0.61 per pound. Skim milk powder gained 1.3% to $3,721 per metric ton or $1.69 per pound. Whole milk powder gained 0.6% to $4,008 per metric ton or $1.82 per pound. USDA will release the World Agricultural Supply and Demand report Thursday.
AVERAGE CLASS III PRICES
| 3 Month: | $19.46 |
| 6 Month: | $19.49 |
| 9 Month: | $19.48 |
| 12 Month: | $19.42 |
CHEESE
Cheese demand is termed as good, meeting seasonal expectations. Some anticipated they will struggle to keep up with orders until holiday orders drop off. Inventory is higher than last year but not at levels that are considered bearish. Supplies are sufficient and higher than a year ago. Inventory is expected to have decreased during November but remain above a year ago. Offers for spot milk are not abundant, as most plants are utilizing their supplies. Weekly cold storage holdings in selected surveyed warehouses does not indicate a large decrease of inventory.
Butter
Most butter orders for the holidays are expected to be filled within another week. Cream supply is adequate with supply expected to increase over time. It is interesting to note that Dairy Market News reports that retail holiday butter sales are slightly lower than last year in the Atlantic region.
OUTSIDE MARKETS SUMMARY
December corn declined 1.50 cents, closing at $5.8475. January soybeans gained 10.75 cents, closing at $12.61, with December soybean meal up $6.70 per ton, closing at $365.60. December wheat declined 8 cents, ending at $7.9125. December live cattle declined $0.67, closing at $137.55. January crude oil gained $0.31, ending at $72.36 per barrel. The Dow gained 35 points, closing at 35,755, while the NASDAQ gained 100 points, closing at 15,787.
