Dairy producers’ November milk checks are likely to weaken somewhat, based on a preview of Federal Milk Marketing Order (FMMO) milk class prices. Announced on Dec. 4, gains in FMMO Class II and IV milk class prices were more than offset by a decline in the Class III milk price for November, as well as a drop in the previously announced Class I base price for the month.
Adding it all up, November 2024 FMMO pooling estimates, uniform prices and producer price differentials (PPDs) will be released on Dec. 11-14 and summarized on Dec. 16. Watch Progressive Dairy’s website for an update.
November class prices
Class prices announced on Dec. 4 were:
- At $21.52 per hundredweight (cwt), the November Class II milk price is up 51 cents from October and 31 cents more than November 2023.
- The November Class III milk price fell $2.90 from October to $19.95 per cwt. That is still up $2.80 from November 2023 but the lowest since July 2024.
- At $21.12 per cwt, the November 2024 Class IV milk price is up 22 cents from October and is 25 cents more than November 2023.
Potentially affecting FMMO pooling, the November 2024 Class IV milk price jumps to $1.17 per cwt more than the Class III milk price, again providing incentives for depooling Class IV milk.
Further offsetting higher Class II and IV milk prices, FMMO blend prices will be weakened by a lower advanced Class I base price, previously announced at $22.53 per cwt, down 64 cents from October 2024 but still $2.78 more than November 2023.
Butterfat value dips, protein value falls
Contributing to the November milk class price calculations, value changes for butterfat and protein were both down from a month earlier.
The value of butterfat fell 2.25 cents per pound from October, to about $3.06 per pound. It’s the lowest since January.
Meanwhile, the value of milk protein plummeted more than $1 per pound from October, to less than $2.32 per pound, the lowest since August 2024.
The value of nonfat solids was up about 3.5 cents at $1.20 per pound, while the value of other solids rose more than 3 cents, to 40 cents per pound.
Looking ahead
Based on FMMO advanced prices and current futures prices, the outlooks for December regional uniform milk prices are also weaker.
Already announced, the December 2024 advanced Class I base price is $21.43 per cwt, down $1.10 from November 2024. Despite the decline, the December price is still $1.67 per cwt above December 2023.
December Class II, III and IV milk prices will be announced Jan. 2, 2025. As of trading on Dec. 3, the Chicago Mercantile Exchange (CME) Class III milk futures price closed at $18.78 per cwt for December, down $1.17 from the November price and the lowest since May. The December Class IV milk futures price closed at $20.54 per cwt, down 58 cents from November.
If Class III-IV futures prices hold, the December Class III-IV milk price gap will grow to $1.76, offering more incentives for Class IV depooling.
