GENERAL OVERVIEW:
Butter traded 11.5 cents higher in the cash trade today, which led the way for futures to scream higher, closing an already strong week up 7.5 cents, a limit move higher.
MILK:
USDA released the December Milk Production Report this afternoon, stating what the market already suspected, that production is higher. 18.8 billion pounds higher to be exact. That is up 4.6% from December 2024. They also revised the November production to 18.1 billion pounds, up 3 million pounds from last month's preliminary production estimate. Production per cow averaged 2,060 pounds in December, which came in 42 pounds higher than December 2024. The number of milk cows also increased 9,000 head since November and 222,000 head higher than December 2024. For the last quarter data for 2025, the October-December data showed milk production in the United States at 57.8 billion pounds, up 4.2% from the previous year. The average number of milk cows in the United States for October-December totaled 9.56 million head, 23,000 more than the July-September quarter and 202,000 more than the last quarter of 2024. Class III Milk prices were higher on the day, unable to deny the strength seen in every other sector of the dairy market with today's butter rally.
AVERAGE CLASS III PRICES:
| 3 Month: | $15.19 |
| 6 Month: | $15.78 |
| 9 Month: | $16.33 |
| 12 Month: | $16.63 |
CHEESE:
For the week, blocks increased by 6.50 cents with 17 loads traded. The weekly average price is $1.35. Barrels increased 0.25 cents with no loads traded. The weekly average price is $1.3581. Dry whey was unchanged with no loads traded. The weekly average price is 73.50 cents. The December Cold Storage report had natural cheese stocks in refrigerated warehouses up 1% from the previous month and 1% from a year ago.
BUTTER:
For the week, butter increased 22.2 cents with 27 loads traded. The weekly average price is $1.47625. Grade A nonfat dry milk increased 7 cents with two loads traded. The weekly average price is $1.2819.
Butter finished a strong week out with a limit higher move of 7.5 cents going into the weekend. We will have expanded limits come Monday. The USDA released the December Cold Storage report this afternoon. Butter stocks were down 5% from last month and down 7% from December of 2024.
OUTSIDE MARKETS SUMMARY:
March corn closed up 6.50 cents per bushel at $4.3050, March soybeans closed up 3.75 cents at $10.6775 and March soybean meal closed up $3.70 per ton at $299.90. March Chicago wheat closed up 14.00 cents at $5.2950. April live cattle closed up $2.10 at $236.93. March crude oil is up 1.95 per barrel at $61.31. The Dow Jones Industrial Average is down 285 points at 49,098 and the NASDAQ is up 65 points at 23,501.
