MILK
Dairy cattle slaughter in November totaled 250,900 head, a decline of 1,900 head from October. However, this was 5,600 head more than slaughter in November 2021. There is currently not much interest in culling heavily, as milk prices have been good. The gain of cheese prices this week supported nearby Class III milk futures with January jumping $0.69 from its lows and February up $0.42. Later contracts were only slightly above their lows or showed minor losses. Even with underlying cheese prices increasing as much as they did, gains in milk futures were limited due to traders holding an overall bearishness in the market. Gains were tempered by a decline of dry whey and a large decline of butter during the week. Dairy markets will be closed on Monday and will reopen Monday night at the usual time of 5 p.m. Central time.
AVERAGE CLASS III PRICES
| 3 Month: | $19.55 |
| 6 Month: | $19.24 |
| 9 Month: | $19.42 |
| 12 Month: | $19.60 |
CHEESE
For the week, blocks gained 14.50 cents with four loads traded. Barrels gained 5.50 cents with 16 loads traded. Dry whey declined 7 cents with 19 loads traded. The amount of decline and the volume of dry whey is unusual, as price generally does not move that much or have that amount of volume traded over the course of a week. Cheese futures are not quite as optimistic as the spot market with contracts holding a discount to underlying cash.
BUTTER
Cash butter might have seen selling pressure due to November butter inventory only 5% below a year ago. It is a possibility inventory may close out the year right in line with last year. It did not seem possible moving through the year as inventory was significantly below a year ago. For the week, butter fell 46 cents with only eight loads traded. Grade A nonfat dry milk price declined 2 cents with five loads traded.
OUTSIDE MARKETS SUMMARY
March corn gained 5.75 cents, ending at $6.6625. January soybeans gained 11.25 cents, ending at $14.79, with January soybean meal up $3.30, closing at $455.30 per ton. March wheat gained 13.75 cents, ending at $7.76. December live cattle gained $1, closing at $156.90. February crude oil gained $2.07, ending at $79.56 per barrel. The Dow closed 176 points higher at 33,204, while the Nasdaq gained 22 points, closing at 10,498.
