MILK:
Milk production is increasing with some reports of substantial increases in some areas. Gains are likely to remain along seasonal lines moving through the winter with weather impacting production growth. Feed supplies are plentiful and at lower prices than in the past few years. There is generally a correlation between milk prices and corn prices. If this pattern is followed this year, the upside price potential of milk may be limited.
The USDA released this announcement today, "Today, the U.S. Department of Agriculture's (USDA) Animal and Plant Health Inspection Service (APHIS) is announcing the start of its National Milk Testing Strategy (NMTS), which builds on measures taken by USDA and federal and state partners since the outbreak of highly pathogenic avian influenza H5N1 in dairy cattle was first detected in March 2024. Today, USDA is issuing a new Federal Order, as well as accompanying guidance, requiring that raw (unpasteurized) milk samples nationwide be collected and shared with USDA for testing. The Federal Order released today makes three new requirements. First, it requires the sharing of raw milk samples, upon request, from any entity responsible for a dairy farm, bulk milk transporter, bulk milk transfer station, or dairy processing facility that sends or holds milk intended for pasteurization. Second, the Federal Order requires herd owners with positive cattle to provide epidemiological information that enables activities such as contact tracing and disease surveillance. Finally, like USDA's April 24 Federal Order, it requires that private laboratories and state veterinarians report positive results to USDA that come from tests done on raw milk samples drawn as part of the NMTS."
AVERAGE CLASS III PRICES:
| 3 Month: | $19.25 |
| 6 Month: | $19.22 |
| 9 Month: | $19.10 |
| 12 Month: | $19.01 |
CHEESE:
For the week, blocks increased by 5.75 cents with 18 loads traded. The average price for the week is $1.6745. Barrels increased by 8.50 cents with 10 traded. The weekly average price is $1.6510. Dry whey remained unchanged with nine loads traded and a weekly average price of 71.35 cents. Blocks were able to regain the loss of Thursday while barrels were able to regain the loss and then some.
BUTTER:
For the week, butter increased by 5.25 cents with 33 loads traded. The weekly average price is $2.5285. Grade A nonfat dry milk decreased by 0.50 cent with 28 loads traded. the weekly average price is $1.3825. The butter price has been steady or higher over the past six consecutive days. Demand has improved moving into the holiday period, but that may be limited as sufficient supply is available.
OUTSIDE MARKETS SUMMARY:
March corn closed up 5.00 cents per bushel at $4.4000, January soybeans closed steady at $9.9375 and January soybean meal closed down $3.70 per ton at $287.40. March Chicago wheat closed down 1.00 cent at $5.5725. February live cattle closed down $0.15 at $186.18. January crude oil is down $1.10 per barrel at $67.20. The Dow Jones Industrial Average is down 123 points at 44,643 with the NASDAQ up 159 points at 19,860.
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