MILK:
Milk production continues to improve seasonally but remains at levels lower than a year ago. The increase is keeping bottlers and manufacturers supplied. The weakness in milk futures suggests there is too much milk available, but that is not the case. Milk production is adequate but not overwhelming. It is the time of year when demand is generally slower, but lower milk output and reduced demand are taking place balancing the market. After Class III futures were above $20.00 in numerous contracts for a while, only the January contract is above $20.00 closing at $20.28. The price will move very little before the contract settlement as traders have it mostly priced. The February contract is barely hanging onto $19.00 at the close today. Strong milk components are increasing the production of various products adding to supply. The USDA will release the December Milk Production and Cold Storage reports on Friday.
AVERAGE CLASS III PRICES:
| 3 Month: | $19.43 |
| 6 Month: | $19.13 |
| 9 Month: | $19.05 |
| 12 Month: | $19.00 |
CHEESE:
Cheese prices have been under selling pressure. There are indications that cheese demand has been steady to slowly increasing. Milk for cheese processors is running $1.00 below class to even with the class price. Cheese buyers see no need to be aggressive as there is little concern over any shortage of milk for processing.
BUTTER:
The butter price has declined to the lowest level since Dec. 19, 2024. The market had been developing an uptrend but that has been eliminated for now. The heavy cream keeps churns operating on full schedules. This continues to provide sufficient supply for demand with manufacturers wanting to limit inventory build.
OUTSIDE MARKETS SUMMARY:
March corn closed down 5.75 cents per bushel at $4.8425, March soybeans closed down 11.25 cents at $10.5600 and March soybean meal closed up $4.80 per ton at $315.80. March Chicago wheat closed down 4.75 cents at $5.5400. February live cattle closed up $3.00 at $200.05. March crude oil is down $0.41 per barrel at $75.42. The Dow Jones Industrial Average is up 131 points at 44,157 with the NASDAQ up 253 points at 20,009.
