MILK:
Milk production continues along seasonal lines increasing steadily. This is expected to continue as cow comfort and feed intakes improve. Production is not expected to grow by leaps and bounds and is not expected to overwhelm the market. Spot milk prices are anticipated to decline as the Christmas holiday period approaches and schools are closed for a few weeks, However, spot milk prices are not expected to be as low as they generally are during that period. Fluid milk demand is steady with some increases noted as demand for holiday milk items is beginning to increase. The spread of bird flu continues to be an issue impacting milk production in those herds that are affected by it. However, it has not tightened overall milk production. The USDA will release the World Agricultural Supply and Demand report on Tuesday. This report will show the estimates for milk production, milk prices, and dairy product prices for this year and 2025.
AVERAGE CLASS III PRICES:
| 3 Month: | $19.16 |
| 6 Month: | $19.17 |
| 9 Month: | $19.08 |
| 12 Month: | $19.01 |
CHEESE:
Cheese prices held but traders did not like the inability of the barrel price to maintain the early gains seen during spot trading. Traders did not think of it as support, but rather the inability of prices to move higher. There is little expectation of prices trending higher but rather remaining choppy in a sideways trading range.
BUTTER:
The butter price may have reached the upper end of where buyers are willing to purchase. The butter supply is plentiful with churning remaining active. Butter stocks have declined seasonally but remain higher than a year ago. Sellers will continue to move supply to the market rather than store and wait for higher prices that may not materialize. Buyers are purchasing on an as-needed basis.
OUTSIDE MARKETS SUMMARY:
March corn closed up 1.75 cents per bushel at $4.4175, January soybeans closed down 3.75 cents at $9.9000 and January soybean meal closed up $2.20 per ton at $289.60. March Chicago wheat closed up 1.50 cents at $5.5875. February live cattle closed up $0.85 at $187.03. January crude oil is up $1.00 per barrel at $68.20. The Dow Jones Industrial Average is down 241 points at 44,402 with the NASDAQ down 123 points at 19,737.
