MILK
Class IV futures were much stronger than Class III futures. The driving force behind Class IV futures was the 4.75 cents jump in Grade A nonfat dry milk price during spot trading. Class III futures were higher but with about half as much gains as Class IV. Traders have become less willing to follow the swings of underlying cash as no trend has been developing other than slow price erosion. The January Federal Order prices were announced today with a Class II price of $21.61, down $1.50 from December and the lowest price since December 2021. Class III price was $19.43, down $1.07. This is the lowest price since December 2021. The Class IV price was $20.01, a decline of $2.11 from December, and was the lowest price since December 2021. There is going to be some shock to the income when the January milk checks arrive this month. Milk production continues to be termed as steady to slightly higher from week to week. This continues to provide sufficient milk to satisfy the needs of the industry. USDA will release the December Dairy Products report on Friday.
AVERAGE CLASS III PRICES
| 3 Month: | $17.82 |
| 6 Month: | $18.32 |
| 9 Month: | $18.77 |
| 12 Month: | $18.91 |
CHEESE
Cheese demand varies with some plants indicating strong demand which is keeping plants busy processing the available milk supply. Other plants indicate demand is not as good as hoped lending to concern over the growth of inventory that might be seen over the upcoming months. Buyers have not been as active in contracting cheese supplies as they had been last year. They were more active last year due to the concern over milk supply and they wanted to get ahead of a potential tight market. It is not the same this year as there is no concern over a tightening supply.
BUTTER
Cream supply is plentiful and reasonably priced. Plants are running on full schedules and seven days a week in many cases. Much of the butter is being bulk packaged and frozen for later use. Retail demand is steady to higher in many areas. Inventory is increasing seasonally and could increase more rapidly than usual if the current rate of production continues.
Outside Markets Summary
March corn gained 1.25 cents closing at $6.81. March soybeans lost 17.75 cents ending at $15.2025 with March soybean meal up $0.50 per ton at $484.70 per ton. March wheat slipped 2.50 cents closing at $7.5975. February live cattle declined $0.42 ending at $158.42. March crude oil fell $2.46 per barrel closing at $76.41. The Dow gained 7 points closing at 34,093 while the Nasdaq jumped 232 points closing at 11,816.
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