MILK
Class III milk futures showed gains across the board today with greater strength seen in 2024 contracts. The January contract was able to move above $18.00 again where it has not been for a couple of weeks. Traders will be cautious over buying into the market too aggressively. However, there seems to be greater strength developing in contracts for next year. Class IV futures held well despite the weakness of butter price. USDA estimates milk production this year at 227.6 billion pounds according to the World Agricultural Supply and Demand report, up 100 million pounds from their previous estimate. The estimate for 2024 was left unchanged at 230.4 billion pounds. Unfortunately, they reduced their estimate of the Class III price this year to $17.05, down $0.30 from the September estimate. The price estimate was reduced the next year to $17.20, down $0.35. The Class IV price was increased $0.65 to an average of $19.25 with the estimate for next year at $18.80. up $0.80 from the previous estimate. The All-milk price was raised $0.30 to average $20.70 this year and raised $0.25 next year to $20.55.
AVERAGE CLASS III PRICES
| 3 Month: | $17.28 |
| 6 Month: | $17.80 |
| 9 Month: | $18.08 |
| 12 Month: | $18.24 |
CHEESE
There may be some better demand seen for cheese this month as buyers prepare for the holidays. However, supply is sufficient which may limit upside potential. USDA reduced their estimate for the average cheese price this year to $1.77 per pound, down $0.04 from their previous estimate. The price for next year was also reduced $0.04 to an average of $1.8050. The dry whey price was left unchanged at 34.50 cents this year and left unchanged next year at 31.50 cents per pound.
BUTTER
The weakness of butter today likely indicates the market has peaked. The hope is that price will not fall rapidly, but the market generally falls faster than it goes up. USDA estimated butter price to increase from their previous estimate. The average price increased $0.12 to $2.66 this year and raised $0.1050 cents next year to an average of $2.6550. Nonfat dry milk was raised to $1.1750 this year and to $1.13 next year.
OUTSIDE MARKETS SUMMARY
December corn closed up 8.00 cents per bushel at $4.9600, November soybeans closed up 37.50 cents at $12.9000 and December soybean meal closed up $15.80 per ton at $392.90. December Chicago wheat closed up 15.50 cents at $5.7150. December live cattle closed up $0.83 at $187.80. November crude oil is up $0.02 per barrel at $83.51. The Dow Jones Industrial Average is down 231 points at 33,631 with the NASDAQ down 85 points at 13,574.
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