MILK
Milk futures closed very strong with Class III futures steady to 31 cents higher. Steady prices were seen in contracts in 2024. Class IV futures were steady to 72 cents higher. February and March 2024 contracts closed 72 cents and 65 cents higher with only one contract traded. The gains are not necessarily representative of the market and may settle back in time. However, steady cheese prices and further strength of butter are receiving attention from bullish traders. There seems to be a possible switch in sentiment, but it will take more time for this to become more solidified. The market will need to prove itself. December exports of dairy products were good with an increase of 15% over a year earlier. The value of exports increased 21%. This put value of exports in 2022 at $9.614 billion and a record. Even with strong export all year, the market has maintained sufficient supply of milk and dairy products to the market and then some, resulting in the current lower prices we are seeing.
AVERAGE CLASS III PRICES
| 3 Month: | $18.06 |
| 6 Month: | $18.59 |
| 9 Month: | $19.06 |
| 12 Month: | $19.21 |
CHEESE
Cheese exports finished the year up 12% from 2021. December exports increased 16.4% from the previous year totaling 35,787 metric tons. Whey exports in December gained 18.2% over a year earlier totaling 6,584 metric tons and closed the year 9.5% higher than 2021. Exports have been phenomenal last year and there are projections that this year may even be higher.
BUTTER
Butter has been the leader throughout the year for exports with an overall gain of 43.4% over the pace in 2021. The concern is that exports in December were 4.1% below December 2021 totaling 4,685 metric tons. This is the first time exports have been below the previous month in about 2 years. This was expected as world butter prices have been weakening since September. Nonfat dry milk/skim milk powder exports increased 8.0% in December totaling 63,383 metric tons. Exports for 2022 were down 6.1% compared to 2021. Whole milk powder exports did not do very well in December with only a total of 3,267 metric tons exported. This was down 20.3% from a year earlier. Total exports in 2022 were 1.2% lower than 2021.
Outside Markets Summary
March corn fell 7.75 cents closing at $6.7075. March soybeans declined 0.50 cent closing at $15.1925 with March soybean meal up $13.90 per ton closing at $495.50. March wheat declined 7.50 cents closing at $7.5725. February live cattle gained $0.02 closing at $160.82. March crude oil declined $0.41 closing at $78.06 per barrel. The Dow declined 249 points closing at 33,700 while the Nasdaq declined 121 points closing at 11,790.
