A volatile day in milk markets finished with a Milk Production report that surprised expectations. Pre-report estimates were a year over year growth of 1.8%. December USDA milk product came in up only 0.8% year over year at 18.934 billion lbs. WE also saw a revision to November production lower to only a 1% versus a 1.3% growth year over year. The cow herd sits at 9.4 million cows the lowest level since February of 2022. Losing 8,000 head from November but they revised November numbers down 12,000 head.
Class III milk traded higher after the report, but settled significantly lower after a sell off in spot cheese. January was unchanged at $19.43, February down 40 to $18.21 and March fell 26 to $17.95/cwt.
Class IV was much quieter with January up 3 cents to $19.84, February down 3 to $18.92, and March unchanged at $18.25/cwt.
The CME spot trade had Butter unchanged at $2.26 ¾, Cheddar blocks tumbled 7 cents to $1.91 ¾ with barrels down 9 ¼ to $1.57 1/4/lb. Grade A Non Fat Dry Milk fell a quarter of a cent to $1.16 ½ with Dry Whey up half a cent to $0.33/lb.
With Ever.Ag this is Jenny Wackershauser on Know your markets.
