GENERAL OVERVIEW:
Milk futures closed higher in most contracts with traders buying back their previously sold positions. Price changes in the spot market provided little for traders to get excited over. The November Dairy Products report showed significantly higher production than a year ago.
MILK:
Milk futures were higher, but it was not due to a change in the market fundamentals. Traders continue to scalp the market, attempting to make a profit. The substantial decline in futures on Monday was taken advantage of by selling their previously sold positions and buying to make a profit on a rebound is possible. Milk production remains strong and continues to result in a sufficient supply for bottling and manufacturing. This is expected to continue as the first quarter unfolds. Higher milk production has resulted in greater output of dairy products. The increased demand through the last quarter of 2025 was overwhelmed by the volume of milk available. Increased seasonal demand provided little support for prices due to sufficient supply.
AVERAGE CLASS III PRICES:
| 3 Month: | $15.24 |
| 6 Month: | $15.82 |
| 9 Month: | $16.37 |
| 12 Month: | $16.67 |
CHEESE:
The November Dairy Products report was released today. American cheese production totaled 474 million pounds, up 5.6% from November 2024. Italian-type cheese production reached 526 million pounds, up 6.8% from a year earlier. Total cheese production was 5.9% higher than in November 2024, totaling 1.22 billion pounds. Dry whey production increased slightly from a year ago at 64.8 million pounds. Lactose was 2.7% higher, totaling 87.2 million pounds. Whey protein concentrate production totaled 41.7 million pounds, up 4.9%.
BUTTER:
Butter production in November totaled 180 million pounds, up 2.2% from November 2024. Nonfat dry milk production totaled 108 million pounds, down 9.8%. Skim milk powder production totaled 40.5 million pounds, down 9.9%.
OUTSIDE MARKETS SUMMARY:
March corn closed down .50 cent per bushel at $4.4400, March soybeans closed down 5.75 cents at $10.5625, and March soybean meal closed down $.40 per ton at $299.50. March Chicago wheat closed down 2.00 cents at $5.1050. February live cattle closed up $0.75 at $236.63. February crude oil is down $1.37 per barrel at $56.95. The Dow Jones Industrial Average is up 485 points at 49,462, with the NASDAQ up 151 points at 23,547.
