Friday Closing Dairy Market Update - Quiet Close to the Week

GENERAL OVERVIEW:

It was a day without much fanfare as milk futures closed mixed. The only excitement for the day and the week was nonfat dry milk, with a substantial increase in price for the week.

MILK:

Milk futures closed the day mixed. Class III futures closed lower for the week while Class IV futures increased substantially from the previous week. The large increase in nonfat dry milk provided support. The USMCA has always been a topic of discussion. Canadian dairy farmers are upset about the possibility of agricultural concessions to the U.S. to avoid the addition of tariffs on key industrial commodities. Here is a quote from Dow Jones Newswires on Thursday. "'Our national food sovereignty is not up for negotiation," said David Wiens, head of the influential Dairy Farmers of Canada. "It is imperative that no more concessions on dairy are made.' The Trump administration is set next week to impose 50% tariffs on certain Canadian goods in response to Canada's alleged mistreatment of U.S. dairy products, automobiles and alcohol. Canadian officials say they are unwilling to upend the country's supply-management system, whereby government agencies set dairy prices, enforce production quotas, and limit dairy imports. Canadian and US negotiators are in talks in Washington to avoid the imposition of new 50 percent duties." It will be interesting to see what transpires over the weekend.

AVERAGE CLASS III PRICES:

3 Month:	$17.11
6 Month:	$17.27
9 Month:	$17.33
12 Month:	$17.43

CHEESE:

For the week, block increased 4.50 cents with 14 loads traded. The weekly average price is $1.6050. Barrels increased 1.50 cents with one load traded. The weekly average price is $1.5535. Dry whey decreased 0.50 cent with two loads traded. The weekly average price is 68.95 cents. The increase in the block cheese price did not support Class III prices during the week.

BUTTER:

For the week, butter declined 5.25 cents with 121 loads traded. The weekly average price is $1.4755. Grade A nonfat dry milk jumped 16.75 cents with 32 loads traded. The weekly average price is $1.6570. The nonfat dry milk price moved to the highest price since June 15th.

OUTSIDE MARKETS SUMMARY:

December corn closed up 11.25 cents per bushel at $4.8325, November soybeans closed up 10.25 cents at $11.9250, and December soybean meal closed up $2.30 per ton at $316.30. September Chicago wheat closed up 22.00 cents at $6.7475. October live cattle closed down $1.18 at $218.88. September crude oil is up $1.15 per barrel at $82.40. The Dow Jones Industrial Average is down 108 points at 53,732, with the NASDAQ down 74 points at 26,729.

Friday Midday Dairy Market Summary - Butter and Cheese Drop Back

OUTSIDE MARKETS SUMMARY:

CORN:	8 Higher
SOYBEANS:	4 Higher
SOYBEAN MEAL:	$1.10 Higher
LIVE CATTLE:	$2.65 Lower
DOW JONES:	141 Points Lower
NASDAQ:	125 Points Lower
CRUDE OIL:	$1.02 Higher

MIDDAY MARKET UPDATE:

The block cheese price declined 1.00 cent to close at $1.6000 with no loads traded. The barrel cheese price remained unchanged at $1.5625 with no loads traded. No buyers showed up in either category, keeping negativity alive and well. The dry whey price increased 2.00 cents to close at 69.00 cents with one load traded. Class III futures are 5 cents lower to 5 cents higher. The butter price declined 2.75 cents to close at $1.4600 with 9 loads traded. There were 8 unfilled bids and 37 uncovered offers remaining at the close. Grade A nonfat dry milk gained 3.50 cents to close at $1.7450 with 6 loads traded. Class IV futures are 9 cents lower to 12 cents higher. Butter futures are 0.27 -- 1.75 cents lower. Dry whey futures are 0.25 cent lower to 0.30 cent higher. Cheese futures are 1.10 cents lower to 0.70 cent higher. Nonfat dry milk futures are 2.47 cents lower to 1.57 cents higher.

Friday Morning Dairy Market Update - Traders Wait for Price Direction

OPENING CALLS:

Class III Milk Futures:	Mixed
Class IV Milk Futures:	4 to 8 Higher
Butter Futures:	1 to 2 Higher

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	4 to 5 Higher
Soybean Futures:	5 to 7 Higher
Soybean Meal Futures:	$2 to $3 Higher
Wheat Futures:	12 to 14 Higher

MILK:

The large increase in Class IV milk futures on Thursday did not carry over into overnight trade. Class IV contracts generally do not trade overnight as bids and offers are far apart. Higher futures are expected as trading activity increases during the day. Class III traders will take a wait-and-see attitude before making any strong commitments. Beef cattle prices have been declining, which has reduced calf prices and some of the extra income from those calves. However, even with lower prices, beef-on-day calves will continue to be an integral part of the dairy operation. Dairy cattle slaughter is not expected to increase significantly anytime soon.

CHEESE:

The block cheese price has had a nice bounce this week, but the concern is whether it will hold. Traders have been cautious in Class III futures as futures remain close to what they were a week ago. Demand is good, and cheese production is steady.

BUTTER:

There have been a lot of loads of butter traded on the spot market so far this week. Immediate orders are being filled without difficulty, and inventory is being added to in preparation for fall and holiday demand. Cream supplies are not abundant, but sufficient to maintain an active churning schedule. The price may remain choppy.