MILK
Traders did not get excited over the increase in cheese prices Thursday as the overall bearishness of the market remains prevalent. Price increases have been short-lived, requiring the market to prove itself before traders turn more positive.
USDA released the World Agricultural Supply report with a decrease in the estimate of milk production from the previous month. The November estimate lowered milk production this year to 227.1 billion pounds, down 500 million pounds from the previous estimate. Milk production for 2024 was reduced by 400 million pounds to 230.0 billion pounds.
The Class III milk price this year was increased $0.05 per cwt to $17.10. The estimated average price for next year was raised $0.50 per cwt to $17.70. The Class IV average price estimate was reduced $0.05 per cwt to $19.20. The average price for 2024 was increased $0.05 per cwt to $18.85. The All-milk price average this year remained unchanged at $20.70 while the price of 2024 was raised $0.25 per cwt to $20.80. This was a little improvement from last month for Class III and the All-milk price but nothing to write home about.
AVERAGE CLASS III PRICES
| 3 Month: | $17.10 |
| 6 Month: | $17.49 |
| 9 Month: | $17.79 |
| 12 Month: | $17.99 |
CHEESE
Cheese prices increased but the inability of blocks to hold complete gains kept traders from buying futures aggressively. Sometimes cash prices have a difficult time rallying even during the trading session. USDA left its expectation for cheese price this year unchanged at $1.77 per pound. The price estimate for 2024 was increased 2 cents to $1.8250 per pound. USDA was more positive to raising price this year to 36 cents per pound, an increase of 1.50 cents from October. Price for 2024 was raised 6 cents to 37.50 cents.
BUTTER
The decline of butter has not slowed down with a decline of 9.75 cents again today. Price has dropped 80.25 cents since the record high was reached on Oct. 6. It was a brutal, quick drop as buyers stepped back. USDA reduced its estimate for this year by 1.50 cents to $2.6450. The price estimate for 2024 was reduced 6.50 cents to an average of $2.59. Nonfat dry milk was raised 0.50 cent to $1.18 and increased 4 cents to $1.17 per pound next year.
OUTSIDE MARKETS SUMMARY
December corn closed down 8 cents per bushel at $4.6800, January soybeans closed down 22.25 cents at $13.4350 and December soybean meal closed up $.10 per ton at $449.90. December Chicago wheat closed down 11.50 cents at $5.8075. December live cattle closed down $5.05 at $174.35. December crude oil is up $0.41 per barrel at $75.74. The Dow Jones Industrial Average is down 220 points at 33892 with NASDAQ down 129 points at 13,521.
