MILK
It certainly has been an interesting week. There was some optimism that milk futures would bounce as underlying cash was expected to remain choppy, similar to what it has been with buyers stepping in on price weakness and sellers stepping in when prices increased. That did not take place in cash or futures. However, milk futures were a little subdued in their weakness. They should have fallen further if they would have fell in relation to the decline of cheese. Traders feel buyers might step up at these lower prices which could result in a bounce, and they did not want to be caught in the rebound. November fluid milk sales declined 2.9% from the previous year. Whole milk sales increased 1.5%; flavored whole milk declined 6.1%; reduced fat declined 1.1%; Low fat milk fell 9.0%; fat-free skim milk fell 8.7%; flavored fat-reduced sales fell 14.0%; buttermilk fell 11.0% with other fluid milk products gaining 3.9%. Organic whole milk sales declined 1.9%; organic flavored whole milk sales fell 72.6%; organic reduced fat milk declined 11.7%; organic fat-free milk declined 11.2%; organic flavored fat-reduced sales jumped 27.5% while other organic fluid milk product sales declined 14.3%.
AVERAGE CLASS III PRICES
| 3 Month: | $18.57 |
| 6 Month: | $18.61 |
| 9 Month: | $18.94 |
| 12 Month: | $19.17 |
CHEESE
For the week, blocks fell 16.50 cents with 5 loads traded reaching the lowest level since September 6, 2022. Barrels fell 12.75 cents with 12 loads traded reaching the lowest level since November 29, 2021. Dry whey declined a penny with 16 loads traded reaching the lowest price since August 25, 2020. It was a shorter week but it certainly did not lack selling interest. Buyers purchased only at lower prices. It may be tough for traders to step into the market next week with a strong interest to purchase futures. What has been interesting is that sellers are not holding back in anticipation of a bounce of prices. They continue to offer product in an attempt to keep it moving rather than increasing inventories at the plant level.
BUTTER
For the week, butter fell 10.75 cents with only one load traded. Grade A nonfat dry milk fell 8 cents with 20 loads traded. It is interesting to see how business has increased the lower the price goes. Lower prices should stimulate demand, but supply is plentiful, and sellers want to keep moving it rather than have supply build up. Price is at the lowest level since March 25, 2021.
Outside Markets Summary
March corn declined a penny ending at $6.7625. March soybeans declined 8. 25 cents closing at $15.06.50 with March soybean meal down $7.50 per ton closing at $463.70. March wheat gained 7 cents ending at $7.4150. February live cattle increased $0.67 closing at $156.62. February crude oil gained $0.98 closing at $81.31 per barrel. The Dow gained 331 points closing at 33,375 while the Nasdaq gained 288 points closing at 11,140.
