MILK
Milk futures closed the week without too much fanfare. Class III futures were generally higher while Class IV contracts were mostly steady. Futures generally gained what they lost during the first half of the week in close months while later contracts extended gains. All Class III contracts traded above $20.00 for a period but January and February could not close above that level. Milk is available and continues to increase steadily. Weather is generally conducive to cow comfort promoting strong milk per cow. Milk components are improving and running above last year at this time. Feed supply is good and will be accessible to those areas served by rail as the President signed the bill to avert a rail strike. Feed prices may not be less expensive because of it but should ensure feed will be delivered to areas where needed. Farmers have one week to sign up for the Dairy Margin Coverage program for 2023. Those who have not signed up for supplemental coverage need to do so before signing up for the regular program. The deadline is December 9.
AVERAGE CLASS III PRICES
| 3 Month: | $20.06 |
| 6 Month: | $20.04 |
| 9 Month: | $20.09 |
| 12 Month: | $20.16 |
CHEESE
For the week, blocks declined 5 cents with seven loads traded. Barrels gained 8 cents with nine loads traded. This brought the block/barrel spread 14 cents closer together with the current spread at 20.25 cents. Dry whey price increased a penny for the week with two loads traded. Cheese production is increasing while a few reports indicate some slowing of retail sales. However, demand should remain good through the holidays, but buyers may not be as aggressive as much of the cheese has already been committed for both retail and food service.
BUTTER
For the week, butter declined 4.75 cents with six loads traded. Grade A nonfat dry milk declined 3.75 cents with 10 loads traded. Butter continues to chop around as buyers and sellers take care of business. December butter futures anticipate a decrease in price, but the discount is slowly eroding as price remains near the current level. December futures and cash will converge over the next two weeks. Churning is increasing and demand remains strong.
OUTSIDE MARKETS SUMMARY
December corn fell 15 cents closing at $6.35. January soybeans gained 8.75 cents closing at $14.3850 with December soybean meal up $3.60 per ton closing at $424.50. December wheat fell 21.50 cents closing at $7.3725. December live cattle gained $0.30 closing at $153.35. January crude oil declined $1.24 settling at $79.98 per barrel. The Dow gained 35 points closing at 34,430 while the Nasdaq slipped 19 points closing at 11,464.
