MILK
It was not a good day for Class III milk futures with pressure stemming from only a minor decrease in block cheese price and weakness in dry whey. It was enough for traders to sell into the market in the anticipation upside potential may have run its course. Milk production is generally steady across the country with some areas showing continued increases. Milk supply is sufficient for bottling and manufacturing with no concern over tightening supply. October exports of dairy products increased 9.0% and the seventh consecutive month of gain. The year-to-date value of exports is 25.0% above the same period a year ago totaling $8.081 million. The Ferrero Group, an Italian confectioner, reported that it is purchasing Wells Enterprises, one of the largest U.S. ice cream producers. Wells produces Blue Bunny, Halo Top, and other ice cream brands. The Ferrero Group manufactures Kinder, Nutella, Tic Tac, Ferrero Rocher as well as other products. In recent years, Ferraro had purchased Fannie May chocolates, Nestle's U.S. confectionary business and Kellogg's fruit and snack business. They will have a huge market share of that space. The last day to sign up for the Dairy Margin Coverage program for 2023 is Friday, December 9. If a farm has expanded, there is an opportunity to sign up for supplemental coverage which will use the volume of milk production from 2019. This needs to be signed up for prior to signing up for the Dairy Market Coverage program if it has not already been done.
AVERAGE CLASS III PRICES
| 3 Month: | $19.84 |
| 6 Month: | $19.85 |
| 9 Month: | $19.98 |
| 12 Month: | $20.09 |
CHEESE
Cheese exports during October totaled 36,953 metric tons, up 4.5% from October 2021. Year-to-date exports are 11.7% above the same period a year ago. Whey exports totaled 52,910 metric tons, up 14.6% from a year ago. Year-to-date exports are up 8.3%. Despite much financial turmoil in the world and problems with labor, transportation and shipping, dairy products have continued to gain in export market share.
BUTTER
Butterfat exports in October increased 70.0% over October 2021 totaling 8,628 metric tons. Year-to-date exports are 42.6% above the same period a year ago. Nonfat dry milk/Skim milk powder exports increased 10.5% in October totaling 73,146 metric tons with year-to-date exports down 7.5%. Whole milk powder exports fell 24.0% to 1,781 metric tons with year-to-date export volume down 1.6%.
OUTSIDE MARKETS SUMMARY
December corn gained 2.25 cents closing at $6.2775. January soybean gained 17 cents ending at $14.72 with December soybean meal up $13.00 per ton closing at $462.20. December wheat jumped 21.50 cents closing at $7.27. December live cattle gained $0.37 ending at $151.92. January crude oil fell $2.24 ending at $72.01 per barrel. The Dow closed 2 points higher at 33,598 while the Nasdaq declined 56 points closing at 10,959.
