MILK:
Milk availability is higher and will remain that way for another week or so as milk is diverted from school accounts. Spot milk is running as much as $7.00 below class. However, that is an improvement over a year ago when spot milk was as much as $11.00 below class in some locations. Milk production is running below a year ago and the likely reason spot milk prices are a bit better than a year ago. Dairy Market News reported that milk production in California is seeing increases week-over-week. It will be interesting to see the level of milk production for December. The state continues to wrestle with bird flu affecting many dairy farms. It is likely production has increased from the low levels of November when production fell 9.2%. Next week will be another holiday-shortened week with Tuesday the last day to trade December futures and options.
AVERAGE CLASS III PRICES:
| 3 Month: | $19.73 |
| 6 Month: | $19.77 |
| 9 Month: | $19.53 |
| 12 Month: | $19.37 |
CHEESE:
For the week, blocks increased by 2 cents with six loads traded. The average price for the week is $1.8613. Barrels increased by 0.75 cent, with eight loads traded. The average price for the week was $1.74. Dry whey increased by 1 cent with two loads traded. The average price for the week is 74.25 cents. Cheese demand varied with some indicating tight spot supplies due to steady demand. Inventory remains below a year ago and is not expected to catch up to the previous year anytime soon.
BUTTER:
For the week, butter gained 2 cents with 12 loads traded. The average price for the week is $2.5694. Grade A nonfat dry milk slipped 0.50 cent with 10 loads traded. The average price for the week is $1.3888. This week's price changes in all spot categories have had the least movement in quite some time.
OUTSIDE MARKETS SUMMARY:
March corn closed up 0.25 cent per bushel at $4.5400, March soybeans closed down 7.50 cents at $9.8975 and March soybean meal closed down $4.40 per ton at $310.50. March Chicago wheat closed up 5.50 cents at $5.4650. February live cattle closed up $0.55 at $190.65. February crude oil is up $0.98 per barrel at $70.60. The Dow Jones Industrial Average is down 334 points at 42,992 with the NASDAQ down 298 points at 19,722.
