Thursday Midday Dairy Market Update - Cheese, Butter and Dry Whey Surge; NFDM Falls

OUTSIDE MARKETS SUMMARY:

CORN:	2 Lower
SOYBEANS:	12 Lower
SOYBEAN MEAL:	$3.70 Lower
LIVE CATTLE:	$1.95 Higher
DOW JONES:	429 Points Higher
NASDAQ:	96 Points Lower
CRUDE OIL:	$2.95 Higher

MIDDAY MARKET UPDATE:

The block cheese price increased 12.25 cents to close at $1.6525 with one load traded. There were eight bids remaining at the close. The barrel cheese price finally moved for the first time in nearly a month to increase 11.75 cents to close at $1.5700 with no loads traded. There were 12 bids outstanding by the close. The dry whey price set a new record high again Thursday, at 89.0 cents, an increase of 0.50 cents. There were two loads traded. Class III futures are 10 to 48 cents higher. The butter price closed 4 cents higher at $1.3450 with four loads traded. There were four bids and 85 offers remaining at the close. Grade A nonfat dry milk fell 6 cents to close at $2.15 with six loads traded. Class IV futures are 17 to 39 cents lower. Butter futures are 0.5 to 2.025 cents higher. Dry whey futures are 0.4 to 1.975 cents lower. Cheese futures are 0.1 to 5.2 cents higher. Nonfat dry milk futures are 3.475 to 5.425 cents lower.

Thursday Morning Dairy Market Update - Cheddar Cheese Blocks Rally

OPENING CALLS:

Class III Milk Futures:	12 to 20 Higher
Class IV Milk Futures:	Mixed
Butter Futures:	0.25 to 0.5 Higher

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	Mixed
Soybean Futures:	2 to 4 Lower
Soybean Meal Futures:	$1.90 to $4.30 Higher
Wheat Futures:	Mixed

MILK:

Class III futures traded 7 to 45 cents higher Wednesday on cheese and dry whey strength. Overnights started the night with an 18 cent higher move on the November contract, showing the rally isn't over yet. Class IV has been quiet with nonfat dry milk (NFDM) falling and butter bringing support.

CHEESE:

Another strong cash market for cheese Wednesday with cheddar blocks climbing another 8.75 cents closing at $1.53. That is 14.5 cents higher than Friday, Oct. 9, or 19 cents higher than one week ago. It is safe to say that holiday buying is here as the availability of cheese has not changed, yet the buying has increased substantially.

BUTTER:

It appears like holiday buying may have finally begun for butter as well. Butter climbed 3.5 cents during the spot market Wednesday, and futures responded with the November contract also climbing over 3.5 cents. Eighty-two percent butterfat butter is going to continue to have tight supplies through the end of the year, yet 80% has plenty to hit the shelves.

Wednesday Closing Dairy Market Update - Class III, Butter and Cheese Futures Rally

GENERAL OVERVIEW:

Class III milk futures rally this afternoon, along with Butter and Cheese futures, are trading higher. Dry Whey was mixed near the highs, while NFDM is under pressure.

MILK:

Class III futures have a near repeat of the strength seen yesterday, with the November contract closing up 48 cents. A report released today from Iowa State University highlighted the fact that milk production has been increasing at the fastest pace in over a decade. They stated that between January and August, the EU, US, New Zealand and Argentina have increased production 2.9% over the same period.

AVERAGE CLASS III PRICES:

3 Month:	$16.36
6 Month:	$16.90
9 Month:	$17.15
12 Month:	$17.33

CHEESE:

Cheddar Blocks had a strong move higher today, climbing 8.75 cents with nine loads traded. Futures wanted to play along, ending the day 0.3 to 3.4 cents higher. Barrels have been stuck at 1.4525 since Sept. 16. This is the first time blocks have traded higher than barrels in over a month.

BUTTER:

Butter futures rallied anywhere from 1.625 to 5.9 cents higher this afternoon while cash prices climbed 3.5 cents. Fundamentally, not much has changed. Cream supplies are plentiful, although 82% butterfat butter stocks are tight in most regions. For the spot market, these prices are low, and with holidays coming, buyers may be stocking up ahead of time.

OUTSIDE MARKETS SUMMARY:

December corn closed down 2.00 cents per bushel at $4.8075, November soybeans closed down 6.50 cents at $12.7725 and December soybean meal closed up $1.30 per ton at $364.50. December Chicago wheat closed up 4.00 cents at $6.7325.

December live cattle closed down $1.25 at $225.13. November crude oil is up .88 per barrel at $95.02. The Dow Jones Industrial Average is down 48 points at 51,621 and the NASDAQ is down 511 points at 26,692.