Thursday Midday Dairy Market Summary - Block Cheese Exhibits Further Weakness

OUTSIDE MARKETS SUMMARY:

CORN:	6 Higher
SOYBEANS:	2 Lower
SOYBEAN MEAL:	$2.60 Lower
LIVE CATTLE:	$0.10 Higher
DOW JONES:	548 Points Lower
NASDAQ:	249 Points Lower
CRUDE OIL:	$2.28 Higher

MIDDAY MARKET UPDATE:

The block cheese price declined 4.25 cents to close at $1.5325 with eight loads traded. There were 3 unfilled bids and 13 uncovered offers remaining at the close of spot trading. The barrel cheese price remained unchanged at $1.5650 with no loads traded. The dry whey price gained 1.00 cent to close at 70.25 cents with one load traded. Class III futures are 28 cents lower to 13 cents higher with the August contract showing the only gain as it adjusted to the weekly AMS prices. The butter price remained unchanged at $1.4300 with no loads traded. No buyers showed up in the market with 26 uncovered offers remaining at the close. Grade A nonfat dry milk gained 1.00 cent to close at $1.8200 with 12 loads traded. Class IV futures are 3 -- 7 cents lower. Butter futures are 1.00 cent lower to 1.42 cents higher. Dry whey futures are 0.25 cent higher. Cheese futures are 2.70 cents lower to 1.00 cent higher with the August contract showing ht only gain. Nonfat dry milk futures are 1.22 cents lower to 2.35 cents higher.

Thursday Morning Dairy Market Update - Milk Futures Show Little Direction

OPENING CALLS:

Class III Milk Futures:	Mixed
Class IV Milk Futures:	Mixed
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

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

MILK:

There is not much that can be said about the dairy market other than what has already been said. Milk production is sufficient for demand and is expected to improve seasonally. Buyers of butter and cheese are not aggressive as supplies are readily available. The recent decline in calf prices has received attention as the income from calves has provided significant cash to the dairy operation. There has been discussion about whether culling may increase over time if prices remain or even go lower. It is too early to tell, as the recent decline in cattle prices may be for a short duration and will be driven by consumer demand for beef. The volume of trading activity in the August Class III contract overnight was significant. The contract is mostly priced but adjusted to the weekly AMS prices released on Wednesday. There were 116 contracts traded.

CHEESE:

Cheese prices are expected to remain choppy with little reason to move much. Buyers have not been aggressive in the spot market. They have been able to purchase much of what they need through regular channels in the country.

BUTTER:

Butter continues to show weakness with manufacturers moving supplies to limit increases in plant inventory. Buyers have been able to purchase supplies readily without having to be aggressive. Churns are running on full five-day weekly schedules.

Wednesday Closing Dairy Market Update - GDT Increased 2.3 Percent

GENERAL OVERVIEW:

Milk futures closed under pressure. The increase in the spot nonfat dry milk price was offset by the weakness in butter. The Global Dairy Trade auction trade-weighted average increased 2.3% from the previous event.

MILK:

Class III milk futures opened trading higher but fell back throughout the day as both block cheese and dry whey spot prices closed lower. Trading volume was moderate with trading activity confined to the 2026 contracts. Class IV futures were lower with trading confined to the September and October contracts. The fact that milk prices are not trending higher as a result of stronger spot prices is a concern. Buyers are seasonally more aggressive at this time of year as they look ahead to Fall and holiday demand. The Global Dairy Trade auction trade-weighted average price increased 2.3% from the previous event. There were 41,054 metric tons sold at the average price of $3,873 per metric ton. Anhydrous milk fat decreased 6.0% to $5993 per metric ton or $2.72 per pound. Butter decreased 2.0% to $5,090 per metric ton, or $2.31 per pound. Buttermilk powder decreased 3.5% to $4,552 per metric ton or $2.06 per pound. Cheddar cheese increased 0.6% to $3,744 per metric ton or $1.70 per pound. Lactose increased 3.2% to $1,807 per metric ton or $0.82 per pound. Mozzarella increased 6.1% to $4,234 per metric ton or $1.97 per pound. Skim milk powder increased 7.6% to $3,502 per metric ton or $1.59 per pound. Whole milk powder increased 3.0% to $3,591 per metric ton or $1.63 per pound.

AVERAGE CLASS III PRICES:

3 Month:	$17.00
6 Month:	$17.20
9 Month:	$17.30
12 Month:	$17.40

CHEESE:

Cheese production maintains a steady pace. More milk is moving to bottling for school accounts, but sufficient milk remains available for demand. Cooler weather in the Central region is improving cow comfort, resulting in increased milk output. Spot milk prices this week are running $1.00 below class to $3.00 above. Milk is available for manufacturing for those who need it.

BUTTER:

Butter is having difficulty finding support as manufacturers continue to offer supplies on the spot market. Even though export demand has been strong and domestic demand has been steady with signs of improvement, it has not been enough to tighten the supply and support prices.

OUTSIDE MARKETS SUMMARY:

December corn closed up 10.00 cents per bushel at $4.9800, November soybeans closed up 20.50 cents at $12.3725, and December soybean meal closed up $6.80 per ton at $325.60. December Chicago wheat closed up 16.25 cents at $6.9750. October live cattle closed down $1.70 at $217.23. September crude oil is up $0.89 per barrel at $85.83. The Dow Jones Industrial Average is up 120 points at 53,463, with the NASDAQ up 41 points at 26,331.