MILK:
Buyer support steadily returned to the market Monday, helping to regain a portion of last week's losses at the end of the month. January Class III milk futures remained dead in the water with prices moving 1 cent per cwt higher at $20.37 per cwt with these spot month contracts focusing more on settlement pricing activity than trader market activity. Other nearby contracts posted double-digit gains, with February futures closing at $20.29 per cwt, while April Class III milk prices led nearby markets higher with a 30-cent rally. Overall focus on feed and production costs remains very real and will continue to have an impact on milk prices and the ability to change production levels over the near future. With most of the wholesale cheese market now moving past football parties, the focus will continue to be shifting to spring and summer demand, which is still a very moving target based on economic concerns and any restrictions placed on activities due to COVID. The monthly Agricultural Prices report was released Monday at 2 p.m. Central Time. Monthly average corn prices at the end of December increased 20 cents per bushel from the previous month, moving to $5.47 per bushel. All-hay prices were unchanged from the previous month at $187 per ton. All-milk prices are reported at $21.80 per cwt, up $1 per cwt from previous November price levels. These price shifts adjusted the Milk-to-Feed Price Ratio to 1.98, which is slightly above the November index level of 1.94.
AVERAGE CLASS III PRICES:
| 3 Month: | $20.73 |
| 6 Month: | $21.15 |
| 9 Month: | $21.17 |
| 12 Month: | $21.00 |
CHEESE:
Cash cheese prices bounced actively higher Monday morning with block prices posting a 4-cent gain, moving to $1.83 per cwt. While barrel cheese gained 3.75 cents per pound, moving to $.178 per pound at the end of the month. No trade developed in either the block or barrel market, but a combined five bids developed between the two market, with barrel cheese markets once again showing the most active bidder interest. Following a strong market pullback in dairy prices and cheese markets over the past two weeks, buyers are becoming slightly more active in order to regain longer-term price perspective, although seasonal demand is expected to be quickly wrapping up with football parties coming to an end. Although some end-user and retail buying will still develop over the next two weeks ahead of the Super Bowl Weekend, wholesale markets are now moving to longer-term spring and summer demand projections.
BUTTER:
Following last week's aggressive market retraction in the butter market, the complex remained steady with one load of butter trading Monday with prices at $2.54 per pound. The overall focus on upcoming Easter and Passover needs will be the focus of most wholesale buying over the coming weeks. But given the still-high COVID numbers and uncertainty about how early spring family gatherings will be affected in the coming months, there is still uncertainty surrounding the entire "demand side" of the butter market. The ability to build on last week's lows of $1.49 per pound, could help to spark moderate price support and buyer activity during early February, although reaching previous January highs soon may be a difficult feat to accomplish.
OUTSIDE MARKETS SUMMARY:
March corn lost 10 cents, closing at $6.26. March soybeans gained 20.5 cents, closing at $14.905, with March soybean meal up $7.70 per ton, closing at $418.90. March wheat fell 25 cents, closing at $76125. February live cattle gained $0.87, closing at $139.57. March crude oil increased $1.45, closing at $88.28 per barrel. The Dow added 406 points, trading at 35,131, while the NASDAQ gained 469 points, trading at 14,239
