MILK
Milk production is termed as generally steady across much of the country. It will take some time before the whole impact of excessive rain is known in California. Their production is currently termed as steady to lighter. During the month of December, milk production in California was up 0.3%. Milk per cow was steady with December 2021 at 2,030 pounds with cow numbers up 5,000 head from a year earlier. January is likely to show some significant differences. Fourth quarter milk production for the country was up 1.0% at 56.0 billion pounds compared to the fourth quarter the previous year. This put milk production up 0.2% for the year compared to 2021. Dairy cattle slaughter in December totaled 263,300 head, an increase of 12,400 head from November, but down 4,500 head from December 2021. This supports the decrease in cow numbers seen in the milk production report. Slaughter has been lower than the previous year for ten months. Slaughter increased from the previous month only in February and November. Cow numbers in December were 27,000 head more than December 2021. Dairy Farmers have until January 31st to sign up for the 2023 Dairy Margin Coverage program at the local FSA office.
AVERAGE CLASS III PRICES
| 3 Month: | $18.65 |
| 6 Month: | $18.66 |
| 9 Month: | $18.95 |
| 12 Month: | $19.16 |
CHEESE
Milk supply remains somewhat heavy in the Central region but spot milk prices are not as steeply discounted as they had been for the past four weeks. However, this is not expected to tighten the market as milk supply remains sufficient for bottling and manufacturing needs. Some buying of cheese on the spot market today could have been the result of a concern over increased culling and tighter milk supply over time with buyers deciding price is low enough in order to begin purchasing for inventory. It is too early to know for sure as cheese inventory remains large.
BUTTER
Cream is available and churning is active. Inventory is now above year earlier levels with some indication food service demand has slowed. Overall butter demand at the retail level seems to be holding well. Buyers seem to be holding back anticipating price weakness in the near term.
Outside Markets Summary
March corn gained 7.75 cents ending at $6.8250. March soybeans jumped 21 cents closing at $15.2350 with March soybean meal up $11.60 per ton closing at $477.10. March wheat gained 11.25 cents closing at $7.5250. February live cattle declined $0.87 closing at $156.72. March crude oil gained 0.86 closing at $81.01 per barrel. The Dow gained 206 points closing at 33,949 while the Nasdaq gained 199 points closing at 11,512.
