MILK
Class III futures posted some double-digit losses Thursday even though cheese and dry whey prices increased. The strength of futures yesterday was overdone, and the market needed to move back in line with cash. Class IV futures were mixed with strong gains in November and December.
The September Milk Production report showed production in the top 24 states in line with a year ago, down just 5 million pounds. Production per cow averaged 1,960 pounds which was 3 pounds above September 2022. Cow numbers were 16,000 head less than a year ago and 2,000 head less than August. Milk production in the U.S. was 0.2% below a year ago with milk production per cow averaging 1,943 pounds. Cow numbers in the country were down 6,000 head from August and down 36,000 head from a year ago. This is considered a neutral report.
AVERAGE CLASS III PRICES
| 3 Month: | $17.93 |
| 6 Month: | $18.26 |
| 9 Month: | $18.46 |
| 12 Month: | $18.60 |
CHEESE
The increase in cheese prices certainly was welcomed again Thursday. Buyers remained aggressive. Some plants indicate their inventories are slowly decreasing. This is seasonal but does indicate a bit of a change as demand may be improving. Increasing demand has been delayed more than usual but nevertheless seems to be improving.
The milk production report does not indicate supplies may tighten much further as milk production continues to remain strong. It is uncertain just how aggressive buyers will be moving through the rest of the month.
BUTTER
The decrease in butter today may indicate the market may be establishing a sideways price pattern. It seems buyers are willing to purchase what is needed even at this level. Some report inventory has tightened but not enough to cause concern over tighter supplies. Increasing holiday demand should provide support under the market, but that does not mean the price will remain at this level. However, it may remain unusually high as time progresses.
OUTSIDE MARKETS SUMMARY
December corn closed up 13 cents per bushel at $5.0500, November soybeans closed up 4.50 cents at $13.1550 and December soybean meal closed up $9.20 per ton at $423. December Chicago wheat closed up 13.75 cents at $5.94. December live cattle closed down $1.90 at $185.30. December crude oil is up $2.03 per barrel at $89.30. The Dow Jones Industrial Average is down 251 points at 33,414 with the NASDAQ down 128 points at 13,186.
