Milk Prices up $1.05/cwt in Southeast from November 2016

Milk Production: Milk production in the 23 major states during November totaled 16.2 billion pounds, up 1.1% from November 2016. Production per cow for November averaged 1,861 pounds. The number of milk cows was 8.73 million head, unchanged from October 2017. October production was revised down 0.2% to 16.7 billion pounds. For milk production in the top 5 producing states, California was down 1.1% from November a year ago; Wisconsin up 0.9%; Idaho down 0.6%; New York down 0.3%; and Texas up 5.9%. Other states with large production increases were Colorado (6.1%), Virginia (4.4%), Arizona (4.3%), Utah (4.0%), Illinois (4.0%), Iowa (3.7%), and Indiana (3.3%). The states reporting a large decline in production compared to November 2016 were Washington (-0.8%) and Vermont (-0.5%).

Milk Price and Utilization: The Southeast Uniform milk price for November was $19.07, down $0.05 from October and $1.05 higher than November 2016. The Appalachian Uniform milk price was $18.63, up $0.04 from October and $1.15 higher than November 2016. November’s Class III price was $16.88, up $0.19 from October, and $0.12 higher than November a year ago. The Class IV price was down $0.86 from October to $13.99, and $0.23 higher than November 2016. The Class I Mover price for January is $15.44, down $1.44 from December. The milk/feed ratio for November was 2.54, 0.09 higher than October.

Southeast Class I utilization was 74.89%, up 0.49% from October, and 3.92% lower than November a year ago. The Uniform butterfat price was $2.6246, down 13.73 cents from last month and 51.60 cents higher than November 2016. The November Class I price was $20.21. December Class I price is $20.68. Appalachian Class I utilization was 73.95%, up 2.72% from October, and 1.14% lower than November a year ago. The Uniform butterfat price was $2.6227, down 13.36 cents from last month and 52.34 cents higher than November 2016. The November Class I price was $19.81.

Cheese Production and Stocks: Total cheese production in October was 1.07 billion pounds, up 1.7% from a year ago while butter production was up 2.6% to 143 million pounds. Nonfat dry milk (NDM) production was up 6.5% compared to a year ago with total production at 149 million pounds while skim milk powder (SMP) production was down 42.5% to 23.8 million pounds compared to a year ago. Total cheese stocks at the end of November were up 6% from November a year ago and down 31% from the previous month while butter stocks were down 27% from last month and down 1% from a year ago.

Springer Prices and Cow Slaughter: At Smiths Grove, Kentucky on December 19, supreme springers were $1,375 to $1,425, down $50 while US approved springers were $1,275 to $1,325, down $25. Dairy cow slaughter in November was 243,700 head, down 17,300 head from October and 500 more than November 2016.

What is the Market Offering for Milk to be Sold in March?

Ex: It is Dec. 29 and Mar. Class III milk futures are trading at $13.74. Local Mar. basis estimate is +$3.00.

What is the Market Offering for Milk to be Sold in April?

Ex: It is Dec. 29 and Apr. Class III milk futures are trading at $14.05. Local Apr. basis estimate is +$3.00.