MILK
Milk futures were steady to lower in most contracts. The minor weakness of underlying cash did little to get traders excited over the market. Early higher futures slipped lower after spot prices turned lower. USDA announced additional assistance to dairy farmers yesterday. A second round of payments through the Pandemic Assistance Program and an added Organic Dairy Marketing Assistance Program will be implemented for fluid milk sales between 5 million to 9 million pounds of milk sold from July through December 2020. Payments to farmers will be distributed through independent handlers and cooperatives. South Dairy Trade prices and volumes were released today for dairy products that passed through port in Argentina and Uruguay over a two-week period. In Argentina during the period from December 1-15, there were 10,853.28 tons of dairy products moved to 23 destinations at an average price of $3,944.59 per ton. The whole milk powder average price declined 3.9% from the previous report to $3,596.02 per ton or $1.63 per pound. Skim milk powder increased 3.3% to $3,707.09 per ton or $1.68 per pound. Semi-hard cheese declined 3.0% to $4,606.92 per ton or $2.09 per pound. Hard cheese declined 3.9% to $6,227.50 per ton or $2.83 per pound. Butter declined 4.5% to $,588.79 per ton or $2.08 per pound. Dairy products moving through ports in Uruguay during the period of January 1-15 totaled 3,507.73 tons to 21 destinations at an average price of 4,179.88 per ton. Whole milk powder increased 0.6% from the previous report to $3,714.15 per ton or $2.08 per pound. Skim milk powder increased 3.4% to $3,868.72 per ton or $1.76 per pound. Semi-hard cheese increased 0.1% to $4,998.31 per ton or $2.27 per pound. Hard cheese jumped 11.8% to $6,842.30 per ton or $3.11 per pound. Butter declined 1.8% to $5,304.43 per ton or $2.41 per pound. Buttermilk powder jumped 15.8% to $4,148.80 per ton or $1.88 per pound.
AVERAGE CLASS III PRICES
| 3 Month: | $18.75 |
| 6 Month: | $18.76 |
| 9 Month: | $19.03 |
| 12 Month: | $19.23 |
CHEESE
Cheese prices held much of the gains of yesterday with sellers testing the waters today. Offers were lowered slightly to see if buyers would be willing to purchase. With little to no interest in buying today, sellers may be a bit more aggressive tomorrow. Underlying fundamentals do not suggest prices will trend higher and may only have limited upside potential.
BUTTER
Price may slowly erode for a time now that demand is easily being satisfied with supply from increased output. Cream supply is plentiful keeping churns busy. USDA will release the amount of inventory of dairy products for the month of December on the cold storage report tomorrow.
Outside Markets Summary
March corn jumped 10.75 cents closing at $6.77. March soybeans declined 1.75 cents ending at $14.8850 with March soybean meal down $2.10 per ton closing at $459.80. March wheat gained 14.50 cents closing at $7.3450. February live cattle closed $0.37 higher at $157.85. March crude oil declined $1.49 closing at $80.13 per barrel. The Dow increased 104 points ending at 33,734 while the Nasdaq declined 30 points ending at 11,334.
