MILK:
The February Class III contract moved above $21.00 and a new contract high. The March and April contracts also made new highs. This improves the price outlook for the beginning of the year and may be the foundation of yet higher prices. This certainly would be positive for income as the year progresses. Hopefully, demand will improve and also provide support to the market. There is potential for milk production to improve as the year progresses due to increased cow numbers. However, milk output growth may have some headwinds as bird flu and tight heifer supplies impact the industry. Milk production is improving seasonally but output remains below a year ago. The Global Dairy Trade Auction will take place tomorrow.
AVERAGE CLASS III PRICES:
| 3 Month: | $20.70 |
| 6 Month: | $20.11 |
| 9 Month: | $19.77 |
| 12 Month: | $19.53 |
CHEESE:
The November Dairy Products report showed American-type cheese production 4.9% below November 2023. Italian-type cheese output totaled 493 million pounds, up 1.1% from a year ago. Total cheese output reached 1.15 billion pounds, down 1.7% from November 2023. Dry whey output totaled 66.2 million pounds, down 3.5%. Lactose output totaled 84.7 million pounds, up 0.8%. Whey protein concentrate totaled 39.4 million pounds, down 4.6%.
BUTTER:
Butter production in November totaled 171 million pounds, up 4.4% above November 2023. Nonfat dry milk production totaled 120 million pounds, up 2.8%. Skim milk powder production totaled 47.0 million pounds, down 33.5%. Regular hard ice cream production increased 6.4% totaling 51.6 million gallons.
OUTSIDE MARKETS SUMMARY:
March corn closed up 7.00 cents per bushel at $4.5775, March soybeans closed up 6.00 cents at $9.9775 and March soybean meal closed down $1.30 per ton at $307.30. March Chicago wheat closed up 11.25 cents at $5.4050. February live cattle closed up $1.15 at $195.20. February crude oil is down $0.40 per barrel at $73.56. The Dow Jones Industrial Average is down 26 points at 42,707 with the NASDAQ up 243 points at 19,865.
