Wednesday Closing Dairy Market Update - Dairy Exports Decline in November

MILK:

Milk production leveled off in some areas while others showed increases compared to a year ago. There is sufficient milk available for demand leaving the market supported at the lower levels but with limited upside potential. The increase in block cheese price did not provide further support to Class III futures as the market already had it factored in. Supply and demand seem to be in balance with buyers and sellers doing business as needed. Spot milk prices have not changed over the recent weeks with spot prices in the Central regions ranging from $1.00 under class to even with class. Dairy exports in November declined 9% from a year ago. The decline was fueled by the lower exports of nonfat dry milk/skim milk powder. Added to this were lower exports of low-protein whey.

AVERAGE CLASS III PRICES:

3 Month:	$20.22
6 Month:	$19.80
9 Month:	$19.55
12 Month:	$19.38

CHEESE:

November cheese exports totaled 39,503 metric tons, up 2.4% from November 2023. Year-to-date exports were 17.5% above the same period a year ago. Lactose exports declined 11.8%, totaling 31,631 metric tons. Year-to-date exports are down 9.1%. Whey exports declined 11.5%, totaling 38,765 metric tons with year-to-date up 4.3%. Whey protein concentrate +80 increased 3.0%, totaling 7,521 metric tons with year-to-date exports up 16.6%.

BUTTER:

Butterfat exports showed another month of strong gains, totaling 4,449 metric tons, up 126.4% above November 2023. Year-to-date exports are 25.2% higher. Nonfat dry milk/skim milk powder exports fell 19.7% to 54,100 metric tons with year-to-date exports down 6.5%. Whole milk powder exports jumped 53.6% to 2,442 metric tons. Year-to-date exports are 3.3% lower than the previous year.

OUTSIDE MARKETS SUMMARY:

March corn closed up 11.75 cents per bushel at $4.9700, March soybeans closed up 15.50 cents at $10.6050 and March soybean meal closed up $8.20 per ton at $309.80. March Chicago wheat closed up 17.25 cents at $5.6250. April live cattle closed down $2.33 at $204.95. March crude oil is down $0.74 per barrel at $73.03. The Dow Jones Industrial Average is down 137 points at 44,714 with the NASDAQ is down 101 points at 19,632.