MILK
The advanced Class I price for December is $22.58, down $1.51 from the previous month. Some fluid milk buyers will hold off with purchases as much as possible to take advantage of lower December prices. Schools are closed for the rest of the week, which moves more milk to manufacturing. This milk will be handled with little difficulty and will be welcomed by some plants as they trying to keep up with orders. With increasing milk production running ahead of last year and inventory at high levels, there is little reason for buyers to become concerned over supply. USDA is proposing to modernize the Women, Infants, and Children's (WIC) program to provide more flexibility for independent grocers and families. The changes will increase the level of assistance by expanding whole grain options. It will also provide for more non-dairy substitution options such as soy-based yogurts and cheeses and require lactose-free milk to be offered. This has raised the ire of some in the dairy industry, as it will reduce the amount of dairy consumption through this program. Dairy markets will be closed the rest of the week with trading reopening Sunday evening at the regular time.
AVERAGE CLASS III PRICES
| 3 Month: | $20.47 |
| 6 Month: | $20.15 |
| 9 Month: | $20.10 |
| 12 Month: | $20.12 |
CHEESE
For the holiday-shortened week, blocks fell 8.25 cents with no loads traded. Barrels fell 11 cents with two loads traded. Dry whey was unchanged at 44 cents with two loads traded. The action of spot cheese prices was very uncertain with block price declining reluctantly. Barrels fell with little resistance, as buyers had sufficient supply on hand. Typically, cheese prices will soften through the end of the year as holiday orders are filled and demand begins to slow as buyers look ahead to business after the holidays.
BUTTER
The sharp decline and the rebound over the past week have been a sight to behold. This will not be the last time this type of volatility will be seen, but it does make one wonder where the balance of supply and demand will settle. For the week, butter jumped 13.75 cents with 17 loads traded. Grade A nonfat dry milk declined 3 cents with four loads traded.
OUTSIDE MARKETS SUMMARY
December corn gained 6.50 cents, closing at $6.6325. January soybeans gained 6.25 cents, closing at $14.36, with December soybean meal up $1.10 per ton, closing at $409.70. December wheat gained 2 cents, closing at $7.9350. January crude oil fell $3.01 per barrel, closing at $77.94. The Dow gained 96 points, closing at 34,194, while the Nasdaq gained 111 points, closing at 11,285.
