MILK:
Milk futures drifted through the day before showing some aggressive buying interest into the close. The February and March Class III contracts jumped into the close on light trading activity, posting gains of 27 and 32 cents respectively. There were no unexpected changes in the market fundamentals to support this strength. If fundamentals did change, the strength will carry through during trading after Christmas. The movement of underlying cheese prices did not support the move. Milk production continues to increase seasonally with plants having to find homes for extra milk during the holidays. This has resulted in spot milk running as much as $7.00 below class in some cases. The November Livestock Slaughter report showed dairy cattle slaughter totaling 210,300 head, down 25,300 head from October and 19,400 head below November 2023. Dairy cattle slaughter was below the previous year over the past 15 months. Slaughter for the month of November was the lowest since 2009. The market will be closed on Christmas Day and will reopen Wednesday at 5 p.m. CST.
AVERAGE CLASS III PRICES:
| 3 Month: | $19.41 |
| 6 Month: | $19.44 |
| 9 Month: | $19.29 |
| 12 Month: | $19.14 |
CHEESE:
The block cheese price has held recent gains despite holiday demand being filled. The focus of buyers has turned to the first quarter of 2025. They will also assess product movement through the holiday season as an indication of demand. There are reports that demand through the end of the year is steady to somewhat quiet as cheese has been moved to retail and food service to satisfy the expected demand.
BUTTER:
The increase in the butter price Tuesday could have been triggered by the substantial decline in butter inventory in November pulling stocks down to the same level as a year ago. This is bullish and should support the butter price near the current level. The low for the year may have been established. The outlook for 2025 is not exceptionally bullish but should be supportive. The price is expected to remain choppy for the rest of the year.
OUTSIDE MARKETS SUMMARY:
March corn closed up 0.75 cent per bushel at $4.4850, January soybeans closed up 5.75 cents at $9.7525 and March soybean meal closed up $3.60 per ton at $301.60. March Chicago wheat closed down 5.75 cents at $5.3475. February live cattle closed down $0.08 at $187.38. February crude oil is up $0.93 per barrel at $70.17. The Dow Jones Industrial Average is up 390 points at 43,297 with the NASDAQ up 266 points at 20,031.
