MILK
Not much was accomplished this week as far as price movement was concerned. Futures were choppy as underlying cash prices provided some hope for a bottom but that did not materialize. Block cheese and butter prices closed the week at new lows since the high reached earlier in the year. Milk production remained unchanged from the previous few weeks as production has reached a low point but has not yet increased. Component values are better than a year ago improving cheese yields and cream supply.
USDA released the World Agricultural Supply and Demand report which showed a slight decrease in the expected milk production. Milk production was reduced by 100 million pounds this year totaling 225.8 billion pounds. If this estimate holds, milk production would be 500 million pounds lower than in 2023. Milk production for 2025 is estimated at 227.7 billion pounds, down 200 million pounds from the September estimate. The Class III milk price this year was reduced by $0.40 to an average of $19.05 per cwt. The average price for 2025 was reduced by $0.65 to an average of $18.95 per cwt. The Class IV price this year is estimated to average $20.80, down $0.20 from September. The price for 2025 was reduced by $0.85 to an average of $20.35. The All-milk price estimate this year is $22.80, down $0.25 from the previous estimate with the estimate next year reduced by $0.75 to average $22.75.
AVERAGE CLASS III PRICES
| 3 Month: | $21.42 |
| 6 Month: | $20.63 |
| 9 Month: | $20.19 |
| 12 Month: | $20.00 |
CHEESE
For the week, blocks declined by 6 cents with 19 loads traded. Barrels declined 6.75 cents with six loads traded. Dry whey declined a penny with two loads traded. Cheese prices continue to show weakness as manufacturers want to move supply rather than hold inventory. The USDA reduced their estimate for cheese prices this year to $1.8850, down 4.50 cents from the September estimate. The estimate for 2025 is $1.88 per pound, down 6 cents. The dry whey price estimate was raised 0.50 cent to an average of 48 cents per pound.
BUTTER
For the week, butter declined 6.25 cents with 90 loads traded. Grade A nonfat dry milk remained unchanged with 13 loads traded. The average butter price this year was reduced by 7.50 cents from the September estimate to $2.9250 per pound. The 2025 average price was reduced by 22 cents to $2.7850 per pound. The nonfat dry milk this year was lowered a penny to $1.23 and raised by 1.50 cents to $1.25 per pound.
OUTSIDE MARKETS SUMMARY
December corn closed down 2.75 cents per bushel at $4.1575, November soybeans closed down 9.25 cents at $10.0550 and December soybean meal closed down $1.00 per ton at $315.10. December Chicago wheat closed down 4.75 cents at $5.9900. December live cattle closed down $0.70 at $187.58. November crude oil is down $0.29 per barrel at $75.56. The Dow Jones Industrial Average is up 410 points at 42,864 with the NASDAQ up 61 points at 18,343.
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