MILK
Traders followed through on the strength Wednesday, moving most milk futures higher. Dry whey weakness held back further gains that could have been realized. The World Agricultural Supply and Demand (WASDE) report showed USDA being more optimistic over milk production both this year and next year. They raised the estimate for milk production 400 million pounds to an expected total of 226.7 billion pounds. USDA released their initial estimates for 2023 with milk production estimated at 229.5 billion pounds. Exports on a fat basis were raised 500 million pounds to a total of 12.0 billion pounds. Exports on a skim-solid basis were reduced 400 million pounds to a total of 49.9 billion pounds. Initial estimated for exports next year where for 11.5 billion pounds on a fat basis and 51.0 billion pounds on a skim-solids basis. The average Class III price remined unchanged at $22.75. The average Class IV price was lowered was lowered $0.25 to the current estimate of $23.80. The all-milk price was reduced $0.05 to $25.75. The estimates for 2023 are for Class III at $20.50. Class IV was initially set at $21.50. The all-milk price is estimated at $23.55.
AVERAGE CLASS III PRICES
| 3 Month: | $24.36 |
| 6 Month: | $23.78 |
| 9 Month: | $23.12 |
| 12 Month: | $22.36 |
CHEESE
Steady cheese prices Wednesday provide hope for higher prices as buyers may still be interested in purchasing product to increase ownership. Overall cheese demand is good, but concern is rising over demand as retail prices increase. USDA estimates the average cheese price this year to reach $2.1750, up 2.50 cents from the April estimate. The initial projection for 2023 is $2.04 per pound. Dry whey is estimated at 65.50 cents per pound, down 3.50 cents from April.
BUTTER
The average butter price this year was raised a penny to $2.65 per pound. The average price nest year is $2.35 per pound. Nonfat dry milk price was reduced 3 cents to the current estimate of $1.7150 with the average price next year at $1.58. This is not a good start to the outlook for prices for 2023.
OUTSIDE MARKETS SUMMARY
May corn gained 11.25 cents, closing at $8.1350. May soybeans gained 10 cents, closing at $16.6025, with May soybean meal down $1.20 per ton, closing at $399.40. May wheat jumped 65.75 cents, ending at $11.7450. June live cattle declined $1.92, ending at $131.65. June crude oil closed $0.42 higher at $106.13 per barrel. The Dow declined 104 points, closing at 31,730, while the NASDAQ gained 7 points ending at 11,371.
