MILK
Class III futures are above $18 across the board. The gain in barrel price fueled traders' buying interest. They seem to be becoming more friendly and react more quickly and decisively with underlying strength. Fundamentally, the market does not suggest a strong upward price movement to continue for an extended time. Class IV futures increased despite butter and nonfat dry milk prices remaining unchanged in the spot market. Futures continue to make new contract highs. With the prospect of higher milk prices down the road, culling will decrease further as farmers will want to keep the stalls full.
AVERAGE CLASS III PRICES
| 3 Month: | $17.73 |
| 6 Month: | $17.85 |
| 9 Month: | $18.10 |
| 12 Month: | $18.19 |
CHEESE
American cheese production in December totaled 488 million pounds, up 0.5% from December 2022. Italian-type cheese production totaled 510 million pounds, up 0.3% from a year earlier. Total cheese production totaled 1.21 billion pounds, up 0.9% from December 2022. Dry whey production totaled 70.4 million pounds, down 6.1%. Lactose production increased by 1.7% to a total of 90.9 million pounds. Whey protein concentrates production totaled 42.1 million pounds, up 1%.
BUTTER
Butter production totaled 196 million pounds, up 4.4%. Nonfat dry milk output reached 146 million pounds, down 12.7%. Skim milk production reached 48.3 pounds, down 24.3%. Ice cream production totaled 47.7 million gallons, down 11.1% from a year ago.
OUTSIDE MARKETS SUMMARY
March corn closed unchanged at $4.4275. March soybeans gained 7.75 cents at $11.9625. March wheat fell 9.50 cents, closing at $5.9024. April live cattle declined $1.40, closing at $182.35. April crude oil gained $0.55, closing at $72.85 per barrel. The Dow fell 274 points, closing at 38,380 with the Nasdaq down 31 points, closing at 15,598.
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