MILK
Milk futures did not move much today with contracts closing mixed for both classes of milk. It was interesting to see how the sharp rebound of butter price had little impact on Class IV futures. This was likely due to futures not falling as much as would have been anticipated with the sharp decline yesterday. Class III futures did not increase as much as they should have with the increase of blocks today. The same scenario applies as traders are not moving futures as much as cash due to the choppiness of prices. USDA left the milk production estimate unchanged for this year at 227.0 billion pounds. The estimate for next year was raised 300 million pounds to the level of 229.5 billion pounds and will be another record high milk production. USDA was more positive on milk prices with the Class III price this year estimated at $21.95, up $0.15 from the November estimate. The average price for next year was raised $0.15 to $19.80. Class IV price was raised $0.20 to average $24.50 and reduced next year to $20.10, down $0.25 from the November estimate. The All-milk price was raised $0.15 this year to $25.65 and raised $0.10 next year to an average of $22.70.
AVERAGE CLASS III PRICES
| 3 Month: | $19.67 |
| 6 Month: | $10.68 |
| 9 Month: | $19.86 |
| 12 Month: | $20.03 |
CHEESE
For the week, blocks increased 0.50 cents with two loads traded. Barrel increased 5.25 cents with 19 loads traded. This was interesting as barrel supplies have been termed as more available than blocks and should have limited price movement more. Dry whey declined 1.50 cents with eight loads traded. USDA raised the price estimate for cheese by a penny to an average of $2.11 for this year. For 2023, they raised their price estimate 2.50 cents to an average of $1.9950. Dry whey price remained unchanged for this year at 60.50 cents while price for next year was reduced 2 cents to an average of 46.50 cents.
BUTTER
For the week, butter declined 8.75 cents with 18 loads traded. Grade A nonfat dry milk gained 0.50 cents with no loads traded. The average butter price this year was raised 3 cents to an average of $2.8750 while the average for next year was raised only a penny to $2.4650.
OUTSIDE MARKETS SUMMARY
December corn closed 2.75 cents higher at $6.34. January soybeans declined 2.50 cents closing at $14.8375 with December soybean meal up $2.40 per ton closing at $471.70. December wheat struggled closing 11.50 cents lower at $7.1275. December live cattle jumped $1.25 ending at $153.67. January crude oil declined $0.44 ending at $71.82 per barrel. The Dow fell 305 points ending at 33,476 while the Nasdaq lost 77 points ending at 11,005.
