Tuesday Morning Dairy Market Update - Overnight Trade Picks Up as Class IV Weakens, Class III Turns Mixed

OPENING CALLS:

Class III Milk Futures:	Mixed
Class IV Milk Futures:	6 to 10 Lower
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	1 to 3 Lower
Soybean Futures:	7 to 10 Higher
Soybean Meal Futures:	$0.10 to $0.40 Lower
Wheat Futures:	2 to 3 Lower

MILK:

For nearly all this week, many parts of the country are under a heat advisory. While milk production has been trending higher most of the year, abnormally high temperatures that carry on for five to six days can typically have an impact on short-term milk supply. Tuesday, there is plenty of milk available, and the milk being produced has a lot of cream to keep churning at full capacity.

CHEESE:

Cheese saw little price movement Monday. With not much consumer demand in the short term, there is little reason to get excited about buying cheese at this time. Stocks are adequate and no change is expected in the next few weeks. The cash market showed much of that story to start the week off as it was unchanged with little bids or offers during the trading session.

BUTTER:

Butter is seeing a story play out of a processor sitting on an abundance of supply with a limited number of buyers available. The number of offers in the marketplace show that there is plenty of product to purchase. Bargain buyers are willing to step in here to purchase butter, especially with the holiday baking season just around the corner; however, there is no reason to get in a rush on Tuesday.

Monday Closing Dairy Market Update - Milk Futures Mixed

GENERAL OVERVIEW:

Milk futures started off strong in the overnights but lost momentum midway through the day. Butter had another disappointing day in the cash market, pressuring futures.

MILK:

Hot temperatures return to many parts of the country this week for an extended period, bringing late-summer concerns for milk production on a short-term basis. Class III and Class IV milk futures started off higher on the early morning trade session but quickly lost ground in the day trade. Dry whey and non-fat dry milk were the market leaders near the close with the only consistently higher prices. Both traded 0.75 cent to 1.5 cents higher.

AVERAGE CLASS III PRICES:

3 Month:	$16.87
6 Month:	$17.10
9 Month:	$17.25
12 Month:	$17.38

CHEESE:

Cheese prices are struggling to find support, with the availability of milk being plentiful and demand lacking. Holiday buying has not yet begun, and consumer demand is steady. Both blocks and barrels were unchanged with no loads traded in the cash market on Monday.

BUTTER:

Cream availability is abundant as seen in the cash market. The sheer number of loads offered has been huge recently, showing manufacturers trying to find buyers for the large quantity of butter available. Last week, the Midwest region did sell some cream for export to Mexico, but that did little to nothing for controlling the abundant supply. Butter was down 1.25 cents in the cash market and off 2.257 to 3.475 cents in the futures market.

OUTSIDE MARKETS SUMMARY:

December corn closed up 1.25 cents per bushel at $5.3775, November soybeans closed steady at $12.8800 and December soybean meal closed down $3.60 per ton at $345.30. December Chicago wheat closed down 10 cents at $7.7400. October live cattle closed up $0.95 at $212.68. October crude oil is up 2.94 per barrel at $86.34. The Dow Jones Industrial Average is down 374 points at 53,185, and the NASDAQ is down 31 points at 26,370.

Monday Midday Dairy Market Summary - Milk Futures Lose Ground

OUTSIDE MARKETS SUMMARY:

CORN:	1 Higher
SOYBEANS:	2 Higher
SOYBEAN MEAL:	$0.33 Lower
LIVE CATTLE:	$0.72 Lower
DOW JONES:	328 Points Lower
NASDAQ:	97 Points Lower
CRUDE OIL:	$2.48 Higher

MIDDAY MARKET UPDATE:

The block cheese price was unchanged at $1.4825 with no loads traded. There were three uncovered offers remaining at the close of spot trading. The barrel cheese price was unchanged at $1.5650 with no loads traded and no bids or offers. The dry whey price was also unchanged at 73.75 cents with no loads traded and one bid and offer unfulfilled at the close. Class III futures are 8 cents lower to 4 cents higher. The butter price lost 1.25 cents to close at $1.45 with 18 loads traded. There were 10 unfilled bids and 82 uncovered offers remaining at the close. Grade A nonfat dry milk gained 0.50 cents to close at $1.870 with no loads traded. Class IV futures are 5 to 11 cents higher. Butter futures are 3.375 cents lower. Dry whey futures are 0.75 to 1.525 cents higher. Cheese futures are 0.3 cent to 0.90 cent lower. Nonfat dry milk futures are 1.15 to 2.075 cents higher.