MILK
Milk futures closed steady to lower on Friday. Class III futures had a significant price swing during the day as early strength gave way to selling pressure. Cheese prices are having a difficult time finding support as underlying cash is floundering. This does not bode well for price potential moving forward. Farmers have reduced culling with the idea that milk prices may improve at some point. Feed has been harvested and is available with good quality improving milk production. The current outlook is not very positive for price strength with Class III futures only showing prices reaching $18.80 next year and Class IV price not moving above $19.90. Hopefully, this will change but will need to see better domestic and international demand.
AVERAGE CLASS III PRICES
| 3 Month: | $17.33 |
| 6 Month: | $17.69 |
| 9 Month: | $17.95 |
| 12 Month: | $18.16 |
CHEESE
For the week, blocks declined 6.50 cents with 16 loads traded. Barrels declined 4.50 cents with 22 loads traded. Dry whey declined 1.25 cents with 47 loads traded. Blocks moved to the lowest price since July 19. American cheese production totaled 466 million pounds, 4.2% above September 2022, according to the September Dairy Products report released Friday. Italian-type cheese output totaled 480 million pounds, 3.4% below a year ago. Total cheese output reached 1.15 billion pounds, up 0.1% above September 2022. Dry whey production was up 0.5%, totaling 76.2 million pounds. Whey protein concentrate was up 6.0% at 41.0 million pounds.
BUTTER
For the week, butter declined 8.50 cents with six loads traded. Grade A nonfat dry milk declined 1.25 cents with two loads traded. Buter production in September reached 145 million pounds and 2.9% above a year ago. Nonfat dry milk production for human consumption totaled 101 million pounds, down 17.7% from a year earlier. Skim milk powder production totaled 55.7 million pounds, down 18.7%. Regular ice cream production totaled 61.9 million gallons, down 1.9%. Low-fat ice cream production totaled 34.3 million gallons, down 8.1%.
OUTSIDE MARKETS SUMMARY
December corn closed up 7.25 cents per bushel at $4.7725, January soybeans closed up 23.50 cents at $13.5175 and December soybean meal closed up $15.80 per ton at $442.10. December Chicago wheat closed up 7 cents at $5.7250. December live cattle closed down $0.80 at $183.88. December crude oil is down $1.69 per barrel at $80.77. The Dow Jones Industrial Average is up 222 points at 34,061, while the NASDAQ is up 184 points at 13,478.
