GENERAL OVERVIEW:
After being lower most of the day, Class III futures found some strength into the close. The same could not be said for Class IV futures, as they were steady to lower. Barrels have now gone five consecutive weeks with one load traded. Butter declined to a new low for the year.
MILK:
Milk futures closed lower for the week despite spot cheese prices improving slightly since the end of last week. The bearish attitude in the market cannot be shaken under the current fundamentals. The term being used by many is that the market is awash in milk. Yes, milk production is significantly higher than a year ago, yet milk plants are not overwhelmed with milk. More manufacturing capacity has come online, but spot milk prices up until recently have been higher than they were a year ago. Understandably, spot milk prices will decline as schools close for a few weeks and bottling slows. Spot milk prices will decline, as the market needs to clear the extra milk supply. Next week will be full of major reports. The November Milk Production report will be released on Monday. The Cold Storage report will be released on Tuesday and should bring cold storage reports up to date. The November Livestock Slaughter report will be released on Wednesday. The markets will then be closed on Thursday and open on Friday.
AVERAGE CLASS III PRICES:
| 3 Month: | $15.62 |
| 6 Month: | $15.94 |
| 9 Month: | $16.39 |
| 12 Month: | $16.70 |
CHEESE:
For the week, blocks increased a penny with 21 loads traded. The weekly average price is $1.3805. Barrels increased 0.75 cent with no loads traded. The weekly average price is $1.4040. There has only been one load of barrels traded over the course of five weeks. Dry whey declined 6 cents with seven loads traded. The weekly average price is 72.60 cents. The block price is only 1.50 cents above the low of the year.
BUTTER:
For the week, butter declined by 6.50 cents with 61 loads traded. The weekly average price is $1.4480. Grade A nonfat dry milk declined by 0.25 cent with 11 loads traded. The weekly average price is $1.1605. Butter made a new low for the year on Friday. This has been the lowest price since Feb. 19, 2021.
OUTSIDE MARKETS SUMMARY:
March corn closed down 0.75 cent per bushel at $4.4375, January soybeans closed down 3 cents at $10.4925 and January soybean meal closed down $0.80 per ton at $297.60. March Chicago wheat closed up 2 cents at $5.0975. February live cattle closed up $2.40 at $230.80. February crude oil is up $0.55 per barrel at $56.55. The Dow Jones Industrial Average is up 183 points at 48,135, with the NASDAQ is up 301 points at 23,308.
