MILK
Some positive news on Thursday was that the U.S. House of Representatives passed the Whole Milk for Healthy Kids Act, restoring the option for whole milk to be offered in school lunch programs. The bill is decoupling the fat in whole milk from the fat levels currently set up for each school meal.
This now moves on to the Senate for a vote at some point. There is some concern that the Senate might be mixed on this and could thwart the bill's passage. All types of milk should be offered in school lunch programs at any time to let the children decide which they would like to consume. It would be a good idea to contact your senator and voice your support for this.
Spot milk prices are beginning to weaken with the recent report showing spot milk ranging from $4 under class to $1 over class. Schools will close soon for the holidays and and reopen after the new year, causing bottlers for school accounts to shift milk to manufacturing. Class III futures were steady to lower today with double-digit losses in the first quarter of 2024. Class IV futures were steady to higher.
AVERAGE CLASS III PRICES
| 3 Month: | $16.26 |
| 6 Month: | $16.92 |
| 9 Month: | $17.41 |
| 12 Month: | $17.69 |
CHEESE
There is plenty of milk available for cheese production and the holiday season will leave more available for manufacturing. Milk supply is not excessive and will be handled without difficulty, but it will provide more cheese for the market. Cheese inventory at the end of the year is expected to be near the level of last year or possibly slightly higher. The slower pace of exports is an anchor on price potential as year-to-date exports are 4.5% below the same period a year ago.
BUTTER
There is sufficient cream available for butter production to keep churns active. Overall demand has been good but there are some reports of demand slowing as the end of the year approaches. The price is down to the level it was at early in July with the idea that the price could weaken further and move to the level it was during the first half of the year.
OUTSIDE MARKETS SUMMARY
March corn closed down .25 cent per bushel at $4.7925, January soybeans closed up 6.50 cents at $13.1400 and January soybean meal closed up $1.50 per ton at $403.70. March Chicago wheat closed up 10.50 cents at $6.1575. February live cattle closed up $0.70 at $167.93. January crude oil is up $2.16 per barrel at $71.63. The Dow Jones Industrial Average is up 158 points at 37,248 with the NASDAQ up 28 points at 14,762.
