MILK
Strength finally permeated through the Class III market with double-digit gains nearly across the board. This may not hold, but we can enjoy it while we have it. Prices at the Global Dairy Trade auction did well with steady to higher prices in all categories. The trade-weighted average increased 1.6%. There were 29,559 metric tons (mt) sold to 168 bidders.
Anhydrous milk fat price remained steady with the previous event at $5,573 mt or $2.53 per pound. Butter increased 0.7% to $4,936 mt or $2.24 per pound. Buttermilk powder increased 2.8% to $2,387 mt or $1.08 per pound.
Cheddar cheese price jumped 9.7% to $3,986 mt or $1.81 per pound. Lactose increased 5.3% to $793 mt or $0.36 per pound. Skim milk powder increased 1.2% to $2,671 mt or $1.21 per pound. Whole milk powder increased 2.1% to $3,104 mt or $1.41 per pound. Mozzarella was listed for the first time for $4,005 mt or $1.82 per pound.
AVERAGE CLASS III PRICES
| 3 Month: | $16.71 |
| 6 Month: | $17.33 |
| 9 Month: | $17.74 |
| 12 Month: | $17.99 |
CHEESE
Cheese supply did not tighten but buyers likely needed to step in to purchase for fill-in orders. Price is low so they came in to purchase what was available at whatever price they could get it. This resulted in a nice bounce that hopefully will see further strength.
Most holiday orders are filled and are being shipped. Some buying is taking place to rebuild aging programs, but buyers are cautious about building inventory.
BUTTER
The upward momentum of butter might have run out of steam. The weakness today could result in further weakness tomorrow as immediate orders may have been filled and sellers may step up to move product now that price has ceased moving higher. Supply is sufficient for demand with churning active due to increasing milk components.
OUTSIDE MARKETS SUMMARY
March corn closed up 5 cents per bushel at $4.9050, January soybeans closed down 0.75 cent at $13.0550 and January soybean meal closed up $9.50 per ton at $417.80. March Chicago wheat closed up 10.75 cents at $6.3125. February live cattle closed up $1.90 at $168.98. January crude oil is down $0.72 per barrel at $72.32. The Dow Jones Industrial Average is up/down 80 points at 36,125 with the NASDAQ up 44 points at 14,230.
