MILK
Bottling demand has been steady and increasing as time moves closer to the holidays. Specialty holiday milk drinks are increasing in demand. Most of the increase of milk production seen is being absorbed by the increase in bottling demand. Cheese production is also active, leaving plants on full schedules but not an overabundance of milk. Milk receipts from farms have been steady to higher even though there have been some higher culling rates. Weather has been very good for cow comfort aiding in production. USDA announced the November Federal Order prices. Class II is $18.40, an increase of $1.32 from October and an increase of $4.54 from November 2020. Class III price is $18.03, up $0.20 from October but down $5.31 from a year ago. Class IV price is $18.79, up $1.75 from October and up $5.49 from November 2020.
AVERAGE CLASS III PRICES
| 3 Month: | $18.23 |
| 6 Month: | $18.53 |
| 9 Month: | $18.62 |
| 12 Month: | $18.63 |
CHEESE
There are some indications of slowdown in some cheese orders, but that is not widespread. Some buyers purchased earlier to get ahead of some of the delays in delivery, making sure they received product on time. Cheese markets are holding as there remains interest in purchasing for fill-in demand, but upside potential may be limited unless demand remains at current levels or improves through the end of the year. However, prices may not fall either as buyers are looking ahead to first-quarter demand. Steady cheese prices Wednesday left the market with uncertainty.
BUTTER
Price is choppy as buyers and sellers take care of business. Spot trading volume has been light as there are sufficient supplies moving around the country. Inventory is sufficient for demand but has been decreasing with the inventory levels running below a year ago. Cream is in strong demand for Class II products for the holidays, leaving lighter amounts available for butter production. Weekly cold storage from selected surveyed warehouses showed inventory declining 26% for the month of November.
OUTSIDE MARKETS SUMMARY
December corn gained 5 cents, closing at $5.72. January soybeans gained 11 cents, closing at $12.2825, with December soybean meal up $7.70 per ton, closing at $356.50. December wheat gained 4.75 cents, closing at $7.7850. December live cattle increased $0.12, ending at $136. January crude oil declined $0.61, closing at $65.57 per barrel. The Dow fell 462 points, closing at 34,022, while the NASDAQ fell 284, closing at 15,254.
