Milk Prices Continue to Fall Ahead of Holidays

Block cheese experienced a decline of 6.75 cents/lb, closing at $1.4525/lb, while barrel cheese saw a 4.5 cent drop, settling at $1.4050/lb. Butter, however, saw a rise of 5.75 cents, concluding at $2.5475/lb. Whey remained unchanged, and nonfat dry milk witnessed a one-cent increase.

The impact extended to Class III milk prices, with a drop of approximately 30 cents in Q1 2024, bringing the average to $15.96/cwt. Although Q2 2024 softened slightly, it maintains a significant premium over Q1 at an average of $17.78/cwt. The latter half of 2024 experienced a gain of around five to ten cents. In contrast, Class IV markets generally trended higher, closing 5-10 points above previous settlements.

On another note, the USDA's November 2023 Milk Production report revealed a total output of 18.1 billion pounds for the month, reflecting a 0.6% year-over-year decrease. The milking herd witnessed a decline of 10,000 head in November, contributing to the overall market dynamics.