Friday Closing Dairy Market Update - Spot Prices Show Limited Movement for the Week

GENERAL OVERVIEW:

The week closed with little fanfare. Class III futures were mixed, with Class IV futures showing no trading activity the entire day. There was little change during the week for spot prices. Butter and nonfat dry milk trading volume was substantial.

MILK:

Class III futures closed lower for the week, with block cheese showing a minor loss. Class IV futures were higher for the week with little direction from spot prices. This may be the market pattern in the near term. There has been little change in the overall fundamentals with the exception that milk production has regained some of the losses experienced from hot weather. Current milk output remains higher than a year ago, keeping sufficient milk supplies available for bottling and manufacturing. Class IV futures prices are back above Class III prices this week as the recent strength on nonfat dry milk over the past two weeks has increased the price potential for Class IV milk relative to Class III.

AVERAGE CLASS III PRICES:

3 Month:	$17.12
6 Month:	$17.34
9 Month:	$17.39
12 Month:	$17.46

CHEESE:

For the week, blocks declined 1.75 cents with 23 loads traded. The weekly average price is $1.5460. Barrels were unchanged with no loads traded. The weekly average price is $1.5475. Dry whey increased 0.25 cent with two loads traded. The weekly average price is 69.20 cents. The block price fell to the lowest level since July 8 during the week before recovering. The best we may hope for is a sideways trading pattern in the near term.

BUTTER:

For the week, butter declined 0.25 cent with 94 loads traded. Most of the loads were traded on Thursday. The weekly average price is $1.5030. Grade A nonfat dry milk increased 1.75 cents with 41 loads traded. The weekly average price is $1.5675.

OUTSIDE MARKETS SUMMARY:

December corn closed steady at $4.6200, November soybeans closed down 1.50 cents at $11.7625, and December soybean meal closed down $3.20 per ton at $313.40. September Chicago wheat closed up 8.50 cents at $6.3975. October live cattle closed up $0.35 at $225.28. September crude oil is down $0.16 per barrel at $77.13. The Dow Jones Industrial Average is up 152 points at 54,037, with the NASDAQ up 342 points at 26,691.

Friday Midday Dairy Market Summary - Futures Unable to Find Direction

OUTSIDE MARKETS SUMMARY:

CORN:	2 Higher
SOYBEANS:	1 Higher
SOYBEAN MEAL:	$2.20 Lower
LIVE CATTLE:	$0.20 Lower
DOW JONES:	97 Points Higher
NASDAQ:	252 Points Higher
CRUDE OIL:	$0.66 Higher

MIDDAY MARKET UPDATE:

The block cheese price increased 2.00 cents to close at $1.5550 with four loads traded. The barrel cheese price remained unchanged at $1.5475 with no loads traded. Both categories had no unfilled bids or uncovered offers remaining at the close of spot trading. The dry whey price remained unchanged at 69.00 cents with no loads traded. Class III futures are mixed, ranging from 7 cents lower to 6 cents higher. The butter price decreased 3.75 cents to close at $1.5125 with 12 loads traded. The market took back more than half of Thursday's gains. The number of loads waiting to be sold does not diminish, with 64 uncovered offers remaining at the close of spot trading. Grade A nonfat dry milk increased 1.25 cents to close at $1.5775 with 12 loads traded. Class IV futures have not yet been traded. Butter futures are steady to 3.25 cents lower. Dry whey futures are steady to 0.25 cent lower. Cheese futures are 1.00 cent lower to 0.20 cent higher. Nonfat dry milk futures are 1.00 cent lower to 1.50 cents higher.

Friday Morning Dairy Market Update - Continued Strength Remains Elusive

OPENING CALLS:

Class III Milk Futures:	2 to 4 Higher
Class IV Milk Futures:	Mixed
Butter Futures:	1 to 2 Higher

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	2 to 3 Higher
Soybean Futures:	2 to 4 Higher
Soybean Meal Futures:	Mixed
Wheat Futures:	1 to 2 Higher

MILK:

The price pattern has been choppy and is likely to continue to remain that way for the near term. The volume of loads offered on the spot market is sufficient to meet the demand, leaving it unnecessary for them to remain consistent buyers. The dynamic of the market has changed as larger farms and the income from calves will leave the market less responsive to seasonality and market signals that would have had a greater impact more quickly in the past. The hope is that demand will improve and keep up with the growth in milk production. The June Dairy Products report released on Thursday indicates that increased production is being absorbed. Inventory has not been building, according to the latest Cold Storage report.

CHEESE:

The bounce in the block cheese prices may continue, but it may have limited upside potential. The price has a long way to go to regain what was lost over the past three weeks.

BUTTER:

Butter showed a strong gain on Thursday as buyers purchased a lot of butter on the spot market. It was impressive to see the price rise with 79 loads traded. However, there were 62 loads offered for sale remaining at the close. There are plentiful supplies of butter available.