MILK
Traders found little direction from underlying cash. The slight weakness of cheese had been factored in. Traders are not interested in buying futures aggressively as there seems to be little potential for the foreseeable future. Some buying for the long term may be taking place in late 2024 contracts but nothing of any volume. The January Class I price was released today with a price of $18.48. This is $1.28 lower than December and $3.93 below a year ago.
The Global Dairy Trade auction took place yesterday with the trade-weighted average increasing 2.3%. There were 27,379 metric tons sold during the event. Anhydrous milk fat price increased 0.2% to $5,578 per metric ton or $2.53 per pound. Butter price increased 9.9% to $5,458 per metric ton or $2.48 per pound. Cheddar cheese price increased 6.9% to $4,265 per metric ton or $1.93 per pound. Lactose remained unchanged at $796 per metric ton or $0.36 per pound. Mozzarella decreased 1.1% to $3,960 to $1.80. Skim milk powder decreased 1.3% to $2,620 per metric ton or $1.19 per pound. Whole milk powder increased 2.9% to $3,207 per metric ton or $1.45 per pound.
AVERAGE CLASS III PRICES
| 3 Month: | $15.82 |
| 6 Month: | $16.53 |
| 9 Month: | $17.14 |
| 12 Month: | $17.51 |
CHEESE
Cheese plants indicated there was sufficient milk available but not quite at the levels usual during the holiday period. Spot milk prices may not be at quite the depressed levels they were last year during the holidays but it is unlikely prices will increase any time soon.
Cheese buyers are not aggressive with orders for the holidays already filled. There is limited interest in purchasing to rebuild aging programs anytime soon. If milk production were to tighten through early next year, buyers could become more interested in purchasing a greater supply and building inventory.
BUTTER
Price has been able to hold the recent strong gains providing traders with a bit more hope price may be able to hold better than anticipated through the end of the year. Today, no one showed up during spot trading to do business. Buyers might not be anxious to bid higher to obtain supply while sellers see no need to sell product below the current price. There is some anticipation that price may slip back into the end of the year as manufacturers want to limit inventory.
OUTSIDE MARKETS SUMMARY
March corn closed down 3 cents per bushel at $4.6975, January soybeans closed down 4.25 cents at $13.0825 and January soybean meal closed down $3.30 per ton at $399.90. March Chicago wheat closed down 12.75 cents at $6.1000. February live cattle closed up $1.53 at $170.30. February crude oil is down $0.19 per barrel at $73.75. The Dow Jones Industrial Average is up/down 476 points at 37,082 with the NASDAQ down 225 points at 14,778.
