MILK
It was a bit surprising that Class IV milk futures were mostly higher while Class III futures were mostly lower. The weakness of butter should have put more pressure on Class IV futures. The January Federal Order class prices were announced showing mixed prices. Class II price was $20.04, up $0.16 from December, but down $1.57 from January 2023. The Class III price was $15.17, down $0.87 from the previous month and down $4.26 from a year ago. The Class IV price was $19.39, up $0.16 from November, but down $0.62 from January 2023. The Bi-annual Cattle Inventory report showed the number of milk cows on January 1 at 9.358 million head. This was down 41,000 head from a year ago. Replacement heifers totaled 4.059 million head, down 15,000 head from a year ago. This puts the percentage of heifers to milk cows at 43.4 percent and the lowest January ratio since January 1998. The Agricultural Prices report showed an average December corn price of $4.80, an increase of $0.16 from November, but $1.58 per bushel below December 2022. The premium/supreme hay price was $275 per ton, up $4 per ton from November, but down $52 per ton from a year ago. The All-milk price was $20.60, down $1.10 from November and down $3.90 per cwt from December 2022. The average soybean meal price will be released tomorrow by the FSA which is needed for the income over feed price for the Dairy Margin Coverage program. Other prices to make note of is the average alfalfa price was $205 per ton down $2 per ton from November and down $63 per ton from a year ago. The average soybean price was $13.10, up $0.10 from November, but down $1.30 per bushel from a year ago.
AVERAGE CLASS III PRICES
| 3 Month: | $16.74 |
| 6 Month: | $17.31 |
| 9 Month: | $17.64 |
| 12 Month: | $17.75 |
CHEESE
The availability of milk for cheese production has tightened which has moved spot milk prices at class or as much as $1.00 lower than class. This is a huge difference from where spot milk was a year ago. Retailers report varying levels of demand over the past week. The upcoming Super Bowl should improve demand to some degree, but it will be short-lived. Manufacturers are generally running full production schedules.
BUTTER
Butter production has been active, but supplies are not increasing much if at all. Demand is steady with the expectations for increased demand moving through the first half of the year. Cream is readily available which keeps churns full.
OUTSIDE MARKETS SUMMARY
March corn closed up 0.50 cent per bushel at $4.4825, March soybeans closed up 3.50 cents at $12.2225 and March soybean meal closed up $5.30 per ton at $368.30. March Chicago wheat closed down 10.25 cents at $5.9525. April live cattle closed down $1.05 at $180.70. March crude oil is down $1.97 per barrel at $75.85. The Dow Jones Industrial Average is down 317 points at 38,150 with the NASDAQ down 346 points at 15,154.
