MILK
Nearby months for both Class III and Class IV futures suffered some double-digit losses on Friday, effectively erasing any of the gains during the week and then some. The market gave the impression of strength earlier in the week with traders buying aggressively into the futures market. That was short-lived as it quickly ran out of steam.
That has been a usual occurrence over the past number of months. Fundamentals have not changed and are not expected to change much in the foreseeable future.
USDA released the World Agricultural Supply and Demand Estimates (WASDE) report today with the estimates for milk production being reduced. It estimates milk production this year to total 226.9 billion pounds, a decrease of 200 million pounds from the November estimate. Milk production for 2024 with estimated at 220.0 billion pounds, a decrease of 1.0 billion pounds from the November estimate. The average Class III milk price for this year is now estimated at $17.05, down $0.05 from the previous estimate and the 2024 price is estimated at $16.85, down $0.85 from the previous estimate.
The Class IV milk price estimate for this year was reduced $0.10 to $19.10 with the estimate for next year up $0.05 to $18.90. The All-milk price estimate was reduced $0.10 to average $20.60 while the price for next year was reduced $0.55 to $20.25.
AVERAGE CLASS III PRICES
| 3 Month: | $16.42 |
| 6 Month: | $17.07 |
| 9 Month: | $17.52 |
| 12 Month: | $17.82 |
CHEESE
For the week, blocks increased 6 cents with 16 loads traded. Barrels increased 3.50 cents with 12 loads traded. Dry whey decreased 0.50 cent with four loads traded. USDA reduced the average price estimate of cheese by 0.50 cent to $1.7650 and reduced the estimate for 2024 by 10 cents to $1.7250. The dry whey price remained changed this year at 36 cents and was increased next year by 2.50 cents to an average of 40 cents per pound.
BUTTER
For the week, butter increased 1.50 cents with five loads traded. Grade A nonfat dry milk prices decreased 1.50 cents with 16 loads traded. USDA reduced the butter price for this year by 2.50 cents to an average of $2.62 and increased the price next year by 0.50 cent to an average of $2.5950 per pound. The nonfat dry milk price this year was raised 0.50 cent to average $1.1850 and raised 0.50 cent next year to $1.1750.
OUTSIDE MARKETS SUMMARY
March corn closed down 2.50 cents per bushel at $4.8550, January soybeans closed down 7.75 cents at $13.0400 and January soybean meal closed down $2.10 per ton at $404.70. March Chicago wheat closed down 10.50 cents at $6.3175. February live cattle closed up $3.20 at $165.73. January crude oil is up $1.89 per barrel at $71.23. The Dow Jones Industrial Average is up 130 points at 36,248 while the NASDAQ is up 64 points at 14,404.
