MILK
Milk futures had a strong day following the cash markets higher. February, March and July contracts closed at $20 or higher. Class IV showed a strong close in all contracts with February able to close at $21. The strength is somewhat surprising for this time of year. The Global Dairy Trade action took place Tuesday and showed a slight weakness of the trade-weighted average. After eight consecutive events showing increases, Tuesday's event showed a decrease of 1.5%. The main culprit was whole milk powder, which had a decline of 3.3% to $3,867 per metric tons or $1.75 per pound. Anhydrous milk fat increased 0.9% to $6,724 per metric ton or $3.05 per pounds. Butter increased 1.0% to $5,851 per metric ton or $2.65 per pound. Cheddar cheese increased 0.5% to $5,241 per metric tons or $2.38 per pound. Lactose gained 3.7% to $1,390 per metric ton or $0.63 per pound. Skim milk powder increased 0,7% to $3,745 per metric ton or $1.70 per pounds. The January Class I price was released and showed an increase of $0.54 from December with a price of $19.71.
AVERAGE CLASS III PRICES
| 3 Month: | $19.38 |
| 6 Month: | $19.66 |
| 9 Month: | $19.76 |
| 12 Month: | $19.76 |
CHEESE
There was much anticipation as to the amount cheese inventory would decline in November. It did show a decline, but the decline was rather light based on history. American cheese stocks declined 8.1 million pounds from October. Inventory remains 10% above a year ago. Swiss cheese inventory declined 694,000 pounds to a total of 20.7 million pounds. Inventory remains 3% above a year ago. Total cheese stocks declined 18.2 million pounds to a total of 565.7 million pounds. This was nearly unchanged from a year ago. Total cheese stocks declined 27.0 million pounds to a total of 1.422 billion pounds. This is 5% above a year ago.
BUTTER
Butter inventory dropped 67.0 million pounds to a total 211.8 million pounds. This is a large decline over the course of one month. Inventory is now down 16% from a year ago. This should keep butter price high for an extended period of time.
OUTSIDE MARKETS SUMMARY
March corn gained 4.25 cents, ending at $6.0250. January soybeans jumped 20.75 cents, closing at $13.2875, with January soybean meal up $8.80 per ton, closing at $402.80. March wheat jumped 15 cents, ending at $8.14. December live cattle gained $0.22, closing at $135.75. February crude oil gained $1.91, closing at $73.03 per barrel. The Dow closed 261 points higher at 35,754, while the NASDAQ gained 181 points, closing at 15,522.
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