MILK
Milk futures continue to struggle with little support from underlying cash. Not much has changed in the market recently, leaving trading activity based mainly on what daily cash prices are doing. It is a concern that milk prices have not been able to improve during this time of year. Generally, milk price slip back moving lower into the end of the year. There have been some years that have been different due to other circumstances, but historically once holiday buying is mostly finished, regular demand carries the rest of the business. With current milk production and manufacturing output, buyers of cash have little concern over supply. Class IV futures continue to maintain a premium over Class III futures through June 2024.
| 3 Month: | $17.40 |
| 6 Month: | $17.77 |
| 9 Month: | $18.02 |
| 12 Month: | $18.22 |
CHEESE
Cheese inventory is reported as comfortable even though slightly higher than a year ago. There is sufficient cheese available for demand. Much of the buying by recutters and packagers for holiday gift boxes is finished with other buying continuing to fill retail orders and food service demand. Overall demand is steady and, in some cases, higher than a year ago depending on variety.
BUTTER
We do not need to wonder how much higher butter might move but rather how quickly it may decline. Sellers were not very aggressive today, seeing no buyers showing up during spot trading. Price is still high but will see further weakness through the end of the year. Butter futures anticipated a substantial price decline through the end of the year.
OUTSIDE MARKETS SUMMARY
December corn closed down 5.00 cents per bushel at $4.7000, January soybeans closed up 13.25 cents at $13.2825 and December soybean meal closed down $4.10 per ton at $426.30. December Chicago wheat closed up 3.75 cents at $5.6550. December live cattle closed up $1.05 at $184.68. December crude oil is up $2.06 per barrel at $82.50. The Dow Jones Industrial Average is up 565 points at 33,839 with the NASDAQ up 233 points at 13,294.
