MILK
The decline in cheese and butter prices was not welcomed by traders triggering heavy selling. Most Class III futures contracts eliminated the gains realized last week. Class IV futures were under pressure but not as much as Class III. Those contracts that traded lower moved to the bottom end of the range they had been in. The October Milk Production report does not provide a bullish picture for milk prices for the rest of the year and early next year. The substantial increase in cow numbers from September ensures sufficient milk production will be available to bottlers and manufacturers.
USDA released the October Livestock Slaughter report showing the level of dairy cattle slaughter. Slaughter totaled 235,600 head which was an increase of 25,200 head from September. This was down 7,300 head from October 2023. This indicates the gain in cow numbers in October according to the milk production report was due to more cows entering the milk herd. The largest increase in milk cow numbers took place in Texas with a gain of 40,000 head. This was followed by a gain in South Dakota of 17,000 head. The other states that showed gains were Colorado up 4,000 head; Idaho up 9,000 head; Iowa up 4,000 head; Kansas up 8,000 head and Washington up 2,000 head.
AVERAGE CLASS III PRICES
| 3 Month: | $19.00 |
| 6 Month: | $18.93 |
| 9 Month: | $18.84 |
| 12 Month: | $18.82 |
CHEESE
Reports are that most holiday orders have been filled with current demand varying in the regions. Fill-in demand will be ongoing moving through the Thanksgiving and Christmas seasons. Some cheese manufacturers are looking for extra milk and are having difficulty finding it for next week. However, there is expected to be a greater supply of spot milk available next week as schools will be closed for Thanksgiving.
BUTTER
More cream will be available for butter production next week as many plants will reduce churning for the Thanksgiving holiday. Butter supplies are sufficient for demand with some building inventory to have a cushion on hand moving through the end of the year. Food service demand remains less robust than usual and less than anticipated for this time of year.
OUTSIDE MARKETS SUMMARY
December corn closed down 3.50 cents per bushel at $4.2675, January soybeans closed down 12.75 cents at $9.7775 and December soybean meal closed down $1.70 per ton at $287.70. March Chicago wheat closed down 2.75 cents at $5.6950. February live cattle closed down $0.50 at $187.43. January crude oil is up $1.35 per barrel at $70.10. The Dow Jones Industrial Average is up 462 points at 43,870 with the NASDAQ up 6 points at 18,972.
