MILK
The rebound of Class III milk futures has been incredible over the past week. December has moved back to close at the highest level since September 20. Price has increased $3.00 per cwt over the week. Caution might increase now that milk futures have rebounded this dramatically. Strong underlying cash prices might result in buyers hesitating to purchase anything more than what is needed as it is needed. USDA released the World Agricultural Supply and Demand today with milk production this year estimated to increase 100 million pounds to a total of 227.0 billion pounds. Milk production next year remained unchanged at 229.2 billion pounds. The estimate for Class III milk was reduced $0.10 per cwt to $21.80. The estimate for next year was reduced $0.15 to $19.65. Class IV milk was reduced to $24.30, down $0.30 from the October estimate. Price was reduced $0.65 to an average of $20.35 for next year. The All-milk price is estimated at $25.50, down $0.10 from the October estimate and reduced $0.30 per cwt for 2023.
AVERAGE CLASS III PRICES
| 3 Month: | $21.09 |
| 6 Month: | $20.77 |
| 9 Month: | $20.63 |
| 12 Month: | $20.56 |
CHEESE
Block cheese price has moved to the highest price it has been since July 13. Barrels are at the highest level since October 24. Either supply has tightened in the country causing buyers to come to the spot market more aggressively or orders have increased for the time being. USDA estimates the average cheese price at $2.00 this year, a decrease of 0.50 cents from the October estimate. They estimate the average cheese price for 2023 at $1.97, down 1.50 cents from October. Dry whey price remained unchanged at 60.50 cents this year and unchanged at 48.50 cents next year.
BUTTER
Price has not yet been able to settle down with wild price swings continuing. It is surprising to see the erratic movement of price daily as buyers and sellers seem to be running on fear. There is sufficient supply for demand with butter production slowly improving. USDA reduced the estimate for the average butter price this year to $2.8450 down 3.50 cents from October. Price was raised 1.50 cents next year to $2.4550. Nonfat dry milk price was reduced a penny this year to $1.68 while the average price for next year was reduced 9 cents to $1.4050.
OUTSIDE MARKETS SUMMARY
December corn declined 3 cents closing at $6.6450. November soybeans gained 15.75 cents closing at $14.5975 with December soybean meal down $1.70 closing at $417.60 per ton. December wheat fell 21.25 cents closing at $8.0650. December live cattle declined $1.47 closing at $151.57. December crude oil fell $3.08 ending at $85.83 per barrel. The Dow fell 647 points closing at 32,514 while the Nasdaq lost 263 points closing at 10,353.
