MILK:
Class III milk futures suffered a large setback in response to the decline in cheese prices. Despite the decline, the block cheese price is 18.25 cents above the low from Dec. 2, 2024. The barrel cheese price is 24.50 cents above the low set on the same day. Overall, the underlying cheese prices are not necessarily bearish. The February contract eliminated the gains of the past two weeks, closing at the lowest level since Dec. 26, 2024. The USDA raised milk production on the World Agricultural Supply and Demand Estimates report released today. Milk production for 2024 was raised 300 million pounds from November to now reach 226.3 billion pounds. If this is where the final settlement is, it would be 100 million pounds less than in 2023. The expected milk production for 2025 is 228.0 billion pounds, up 300 million pounds from November. The average Class III price was lowered by $0.15 to $18.90 for 2024 and reduced by $0.50 for 2025 to $18.80. The Class price remained unchanged at $20.75 for 2024 and raised $0.10 to $20.40 for this year. The All-milk price was lowered $0.10 to $22.65. The All-milk price for this year was reduced by $0.30 to $22.55.
AVERAGE CLASS III PRICES:
| 3 Month: | $20.17 |
| 6 Month: | $19.78 |
| 9 Month: | $19.54 |
| 12 Month: | $19.36 |
CHEESE:
For the week, blocks fell 10 cents with 19 loads traded. The average price for the week was $1.8975. Barrels increased by 2 cents with five loads traded. The weekly average price was $1.8655. Dry whey declined a penny with three loads traded. The weekly average price was 74.15 cents. The USDA reduced the average cheese price for 2024 by 2 cents to $1.8650. The average price for 2025 was reduced by 9.50 cents to $1.80. The dry whey price was raised by 0.50 cent to 49 cents and raised by 7.50 cents for 2025.
BUTTER:
For the week, butter increased by 4.75 cents with 17 loads traded. The average price for the week was $2.59. Grade A nonfat dry milk slipped 0.25 cents with 34 loads traded. The average price for the week was $1.3670. The USDA reduced the price for 2024 by 0.50 cent to $2.89 and the price for this year was reduced to $2.6850, down 7 cents from the November estimate. The Grade A nonfat dry milk price remained unchanged for 2024 at $1.24 and was raised 4 cents to $1.30 for 2025.
OUTSIDE MARKETS SUMMARY:
March corn closed up 14.50 cents per bushel at $4.7050, March soybeans closed up 26.25 cents at $10.2525 and March soybean meal closed down $1.00 per ton at $298.30. March Chicago wheat closed down 3.25 cents at $5.3075. February live cattle closed up $1.18 at $198.78. February crude oil is up $2.65 per barrel at $76.57. The Dow Jones Industrial Average is down 697 points at 41,938 with the NASDAQ down 317 points at 19,162.
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