MILK
The volume of dairy exports for 2023 was 7% below 2022. Several factors impacted the movement of dairy products to the export market. Demand from China for whey and nonfat dry milk was a large factor. The value of exports was down 16% for the year at $8.11 billion but was the second-largest export value in history. The export market has a long way to go to get back on track with the growth it had seen a few years ago. There is optimism that exports will be better this year as demand improves. It may take a period for that to turn around, but the increase in price on the Global Dairy Trade auction may be the first indication of a better year for demand.
AVERAGE CLASS III PRICES
| 3 Month: | $16.82 |
| 6 Month: | $17.42 |
| 9 Month: | $17.80 |
| 12 Month: | $17.92 |
CHEESE
For the week, blocks declined 8 cents with two loads traded. Barrels increased 2.75 cents with nine loads traded. Dry whey increased by 1.25 cents with three loads traded. Cheese exports in December increased 0.6% over December 2022 totaling 36,512 metric tons. Total exports for the year were 3.4% lower than in 2022. Whey exports in December were 13.5% below a year earlier totaling 39,086 metric tons. This was down 20.3% for the year compared to the previous year. Whey protein concentrate 80+ increased 14.0% in December reaching 6,618 metric tons and was 18.1% higher for the year than the previous year. Lactose exports totaled 37,043 metric tons, down 2.5% from December 2022 but up 4.6% for the year.
BUTTER
For the week, butter declined 5.50 cents with 12 loads traded. Grade A nonfat dry milk declined 2.50 cents with 20 loads traded. Nonfat dry milk/skim milk powder exports increased by 0.9% in December totaling 65,375 metric tons. This was down 2.9% for the year compared to 2022. Butter exports still struggled with a decline of 30.6% from a year earlier with a total of 2,620 metric tons. Exports for the year were 48.7% below the previous year. Whole milk powder exports totaled 1,511 metric tons, down 53.8% from December 2022, and closed the year down 33.1% below the previous year.
OUTSIDE MARKETS SUMMARY
March corn closed down 4.25 cents per bushel at $4.2900, March soybeans closed down 10.00 cents at $11.8350 and March soybean meal closed down $.30 per ton at $346.80. March Chicago wheat closed up 8.25 cents at $5.9675. April live cattle closed up $0.15 at $186.73. March crude oil is up $0.32 per barrel at $76.54. The Dow Jones Industrial Average is down 55 points at 38,672 with the NASDAQ up 197 points at 15,991.
