MILK:
Milk production is flat to slowly improving across the country. Growth may not be as strong as usual due to high feed prices. However, milk per cow over the past few months has improved significantly. Cow numbers are not expected to increase by leaps and bounds as farms may not be quick to add cows other than by growth internally. Income over feed has declined due to increased feed prices. Costs of other goods and services continue to increase as well. Even with that, USDA estimated increased milk production this year and next year. Milk production this year was increased 400 million pounds to an estimate of 226.9 billion pounds. Milk production next year was also increased by 400 million pounds for the September estimate reaching 229.2 billion pounds. Marketings were raised on a fat basis to 225.8 billion pounds, up 400 million pounds with marketings for 2023 raised 500 million pounds to 228.2 billion pounds. Ending stocks this year are estimated at 14.3 billion pounds, up 1.0 billion pounds from the September estimate. Ending stocks for 2023 were raised to 15.8 billion pounds, an increase of 1.2 billion pounds from the previous estimate. Milk price estimates were increased for both this year and next year. Class III price was raised $0.25 this year to $21.90 and raised $0.20 for 2023 to $19.80. The average Class IV price was raised $0.15 this year to $24.60 and raised $0.15 next year to $21.00. The All-milk price was raised $0.15 this year to $25.60 and raised $0.15 next year to $22.90. The World Agricultural Supply and Demand report was neutral to bullish for corn and bullish for soybeans. This may mean higher prices could remain with us for an extended period of time.
AVERAGE CLASS III PRICES:
| 3 Month: | $21.28 |
| 6 Month: | $20.84 |
| 9 Month: | $20.70 |
| 12 Month: | $20.64 |
CHEESE:
USDA was generous by increasing the average cheese prices this year by 3 cents to $2.1050 per pound and increasing next year's price by 1.50 cents to average $1.9850 per pound. Dry whey price was reduced 0.50 cents to 60.50 cents per pound while the average price for next year was left unchanged at 48.50 cents.
BUTTER:
The average butter price this year was raised 3 cents to $2.88 per pound and raised 5.50 cents to average $2.44 per pound next year. Nonfat dry milk price remained unchanged at $1.69 per pound this year and reduced a penny to $1.4950 per pound next year.
OUTSIDE MARKETS SUMMARY:
December corn closed unchanged at $6.93. November soybeans jumped 19.75 closing at $13.96 with October soybean meal up $11.40 per ton closing at $421.80. December wheat declined 18.75 cents closing at $8.8225. October live cattle gained $0.37 ending at $146.17. November crude oil declined $2.08 closing at $87.27 per barrel. The DOW slipped 28 points closing at 29,211 while the NASDAQ declined 9 points closing at 10,417.
