MILK
Even though cash cheese price closed significantly lower for the week, Class III futures were steady to higher in contracts through May and steady to lower thereafter. Traders anticipated further losses prior to them actually taking place leaving this week with price movement but limited change as it had already been factored in. The same can be said for the large price increase of blocks today. Traders do not feel a price rally will hold. Strong exports in November are expected to carry through for December ending a record year of growth with further growth possible next year. For the first 11 months of 2022, the value of dairy exports reached 25% higher than the previous year at $8.879 billion. The growth of milk solid exports increased 4% over a year ago. This has not been able to keep milk prices higher through the end of the year as milk production has continued to outpace last year during the second half.
AVERAGE CLASS III PRICES
| 3 Month: | $18.78 |
| 6 Month: | $18.88 |
| 9 Month: | $19.11 |
| 12 Month: | $19.28 |
CHEESE
For the week, blocks declined 8 cents with five loads traded. Barrels declined 13.25 cents with 11 loads traded. dry whey declined 2.50 cents with two loads traded. Cheese production in November was higher in all categories. American cheese production totaled 460 million pounds, up 2.2% over November 2021. Italian-type cheese production totaled 485 million pounds, up 1.1% from a year ago. Total cheese production reached 1.15 billion pounds, up 1.6% over a year ago. Dry whey production decreased 1.7% totaling 74.6 million pounds.
BUTTER
Butter output totaled 170 million pounds in November and was 8.9% above November 2021. It was also 5.0% above October even though November had one less day than October. Nonfat dry milk output reached 159 million pounds, down 1.0% from a year ago. Skim milk powder production fell 33.9% totaling 39.4 million pounds. Regular ice cream production reached 53.9 million gallons, up 3.4%. For the week, butter price increased 0.25 cents with no load traded. Grade A nonfat dry milk declined 3.75 cents with four loads traded.
OUTSIDE MARKETS SUMMARY
March corn increased 1.25 cents closing at $6.54. January soybean jumped 34.75 cents closing at $15.0150 with January soybean meal up $14.40 ending at $503.10 per ton. March wheat declined 3.25 cents closing at $7.4350. February live cattle declined $0.57 closing at $156.77. February crude oil gained $0.10 ending at $73.77. The Dow jumped 701 points closing at 33,632 while the Nasdaq gained 264 points closing at 10,569.
