GENERAL OVERVIEW:
The trading volume was exceptionally thin today as expected. Class III futures closed lower with activity not representative of the movement of underlying cash. The November Livestock Slaughter report was released on Tuesday, Dec. 23, and showed a substantial decrease in slaughter.
MILK:
Trading volume was very light in milk futures. This light trade resulted in Class III futures slipping lower as there was little reason for traders to get excited over the minor gains in the spot market. The November Livestock Slaughter report was released on Tuesday, Dec. 23. I made an error in reporting that it was to be released today. Dairy cattle slaughter in November totaled 204,100 head. This was 38,900 head lower than October and 6,200 head lower than November 2024. This is the lowest monthly slaughter number since June and the lowest November slaughter since 2004. This supports the idea that farmers are holding onto cows due to the continued high calf prices. The markets will be closed on Thursday, Dec. 25, for Christmas and will reopen for trading at the regular time Christmas night.
AVERAGE CLASS III PRICES:
| 3 Month: | $15.47 |
| 6 Month: | $15.86 |
| 9 Month: | $16.35 |
| 12 Month: | $16.69 |
CHEESE:
The increase in the block cheese price was minor and not viewed as bullish. Trading activity in Class III futures was representative of this thinking, and the market did not react to its strength. Likely, the largest element was the light trading activity in milk futures. Also, the pattern of limited upside movement keeps traders cautious.
BUTTER:
The gain in butter is likely limited with concern that the increase will only result in a lower price again. That has been the pattern with the decline after an increase, moving to a new low. Butter production will slow somewhat through the holiday season, resulting in lower cream prices on the spot market.
OUTSIDE MARKETS SUMMARY:
March corn closed up 3.50 cents per bushel at $4.5100, January soybeans closed up 11.75 cents at $10.6325 and March soybean meal closed up $3.90 per ton at $308.10. March Chicago wheat closed up 4.75 cents at $5.2175. February live cattle closed down $1.45 at $228.55. February crude oil is up $0.02 per barrel at $58.40. The Dow Jones Industrial Average is up 289 points at 48,73, with the NASDAQ is up 51 points at 23,613.
