MILK
Class III milk futures found late-week support as buyers focused on the mixed movement in cash dairy product markets as well as significant and aggressive pressure in the soybean complex. Soybean prices fell 17 cents per bushel, which accounted for a $16.90 per ton reduction in overall soybean meal prices for the day. This will help to add support to overall profitability by reducing production and feed costs.
The focus on higher milk prices at the end of the week was more on firming demand as fluid demand is coming back online following the Thanksgiving holiday and increased year and holiday demand for other dairy products. Although any movements in hard dairy products like cheese and butter will likely have a more delayed impact on milk prices, soft products such as sour cream, yogurts and dips and eggnog ahead of the holidays are helping to underpin current price levels across the Class III and Class IV complex.
AVERAGE CLASS III PRICES
| 3 Month: | $16.38 |
| 6 Month: | $17.06 |
| 9 Month: | $17.50 |
| 12 Month: | $17.77 |
CHEESE
Cheese prices were mixed Friday, moving both barrel and block price levels to $1.52 per pound at the end of the week. The fact that block cheese prices are equal to barrel cheese markets is not a normal occurrence and could add some additional market shifts to the complex as traders take advantage of the current pricing situation for upcoming longer-term product needs.
Three loads of block cheese were sold while two additional bids went unfilled. Two loads of barrel cheese sold, and three uncovered offers remained on the table at the end of trade.
For the week, cheddar block prices fell 9 cents per pound with a total of 14 loads trading on the exchange, while barrel prices moved 5 cents per pound higher through the week on 16 loads exchanging ownership.
BUTTER
Cash butter prices on the CME exchange remained quiet with no sales, bids or offers and prices were unchanged for the day. But this does not offset the firming market tone seen in the complex which accounted for a 15 cent per pound market rally during the week with six loads of butter selling. The focus on securing holiday and end-of-the-year needs that still need to be placed and shipped may continue to add even more support to overall complex over the next couple of weeks.
OUTSIDE MARKETS SUMMARY
December corn was up 2.75 cents, closing at $4.6450. January soybeans were down 17 3/4 cents, closing at $13.25. ecember soybean meal was down $16.90, closing at $425.3. December Chicago wheat was up 6 3/4 cents, closing at $5.77. December live cattle were down $1.60, closing at $169.275. January crude oil was down $1.55 per barrel, closing at $74.41. The Dow closed up 294.61 points at 36,245.5 and the NASDAQ closed up 78.81 points at 14,305.03.
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