MILK:
Class III milk futures took a beating after cheese prices fell. The decline in blocks was unexpected, with only one load traded. If the recent pattern is followed, the price could be back up about as much as it fell. November fluid milk sales totaled 3.6 billion pounds, down 1.5% from November 2023. Whole milk sales decreased by 0.4%; flavored whole milk fell by 12.0%; reduced-fat milk decreased by 4.2%; low fat decreased by 6.6%; fat-free skim decreased by 6.5%; flavored fat-reduced milk sales declined by 8%; Buttermilk sales decreased by 0.5% with sales of other milk products increasing by 18.5%. Organic whole milk sales increased by 10.4%; organic flavored whole milk rose by 104.8%; organic reduced fat milk went up 10.4%; organic low-fat milk decreased by 7.6%; organic fat-free skim fell 4.3%; organic flavored fat-reduced milk decreased by 34.1% with other organic fluid milk product sales rising by 74.5%.
AVERAGE CLASS III PRICES:
| 3 Month: | $19.70 |
| 6 Month: | $19.34 |
| 9 Month: | $19.20 |
| 12 Month: | $19.13 |
CHEESE:
Cheese buyers and sellers are doing limited business, but that has not limited the volatility. This has made the market extremely difficult to predict. However, the trading volume in the February Class III contract totaled 1,084. Anytime there are more than 100 contacts traded in a single month, it indicates a lot of interest. Cheese needs to see consistent demand to support a higher price trend.
BUTTER:
Buyers see no reason to get excited about butter supplies. Cream is abundant and churning active. Manufacturers will continue to move supply to the market to limit inventory build. If the cream supply tightens, buyers may be willing to step up a bit more aggressively, but at this point, they do not want to hold more inventory than necessary.
OUTSIDE MARKETS SUMMARY:
March corn closed up 5.75 cents per bushel at $4.9000, March soybeans closed up 33.25 cents at $10.6725 and March soybean meal closed up $13.80 per ton at $311.00. March Chicago wheat closed up 20 cents at $5.5875. February live cattle closed up $0.30 at $197.05. March crude oil is down $1.56 per barrel at $75.83. The Dow Jones Industrial Average is up 538 points at 44,026 with the NASDAQ is up 127 points at 19,757.
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