Monday Midday Dairy Market Summary - Futures Trading Higher

OUTSIDE MARKETS SUMMARY:

CORN:	3 Lower
SOYBEANS:	5 Lower
SOYBEAN MEAL:	$0.40 Higher
LIVE CATTLE:	$2.15 Higher
DOW JONES:	31 Points Higher
NASDAQ:	385 Points Higher
CRUDE OIL:	$3.11 Lower

MIDDAY MARKET UPDATE:

The block cheese price increased by 0.5 cents to close at $1.5725 with 1 load traded. The barrel cheese price was unchanged to close at $1.70 with no loads traded. Dry whey increased 1 cent to close at 85.0 cents with no loads traded. Class III futures are trading 1 cent lower to 22 cents higher. The butter price decreased by 0.5 cents, closing at $1.26 with no load traded. There were 2 bids and 36 offers remaining at the close. Grade A nonfat dry milk decreased 1.5 cents to close at $2.1825 with 2 loads traded. Class IV futures are unchanged. Butter futures are mixed trading from 0.975 cents lower to 0.625 cents higher. Dry whey futures have not yet traded. Cheese futures are 0.3 to 2 cents higher. Nonfat dry milk futures are 0.3 to 2.7 cents higher.

Monday Morning Dairy Market Update - Overnight Trade Quiet; Class III the Only Product Trading

OPENING CALLS:

Class III Milk Futures:	Mixed
Class IV Milk Futures:	Mixed
Butter Futures:	0.10 to 0.50 Lower

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	1 to 2 Higher
Soybean Futures:	1 to 2 Higher
Soybean Meal Futures:	$1.40 to $1.60 Lower
Wheat Futures:	2 to 3 Lower

MILK:

Milk supplies are steady week over week. The East has been unseasonably warm, yet production does not seem to be affected. Central milk supplies are steady although spot milk has been less abundant. West supplies are still readily available; however, the Pacific Northwest is suffering from the effects of avian influenza affecting some herds. Nonfat dairy milk (NDM) saw price increases mostly across all regions. For the weekly grocery store activity, conventional total advertisements saw a 3% decrease this week. Organic dairy ads, on the other hand, increased 70%.

CHEESE:

Cheese market conditions were steady to firmer last week. In the East, production is well balanced with demand. There have been some new product launches and holiday promotions to drive demand. In the Central region, milk supplies are steady, but spot availability has tightened as Class I and IV processors increase intake. In the West, milk supplies are balanced as production is steady and export demand is moderate to strong, especially to South Korea. Food service demand is unchanged. Cheese advertisement dropped week over week by 17%.

BUTTER:

Butter demand has increased in the West and is steady in all other regions. Holiday buying is slower than a year ago. Export demand is steady. Some butter manufacturers say export sales are up compared to a year ago. Cream is somewhat tighter and butter production is increasing.

Friday Closing Dairy Market Update - Butter Production Higher

GENERAL OVERVIEW:

USDA released the Dairy Products report Thursday for September, however due to a USDA website error, we didn't get to see the results until Friday morning. Cheese production is down month over month, while higher than last year. Butter production, on the other hand, was up significantly from the previous month and the previous year.

MILK:

Class III futures settled 2 cents higher today on the November contract at $17.70. That is down 30 cents from Monday. Class IV futures did not trade on the November or December contract today, however the January contract was down 48 cents Friday afternoon. While Class IV was not very active for the week, futures were supported from strength in the Nonfat Dry Milk (NDM) market. NDM had a strong week, continuing strength from the end of the week last week. Futures had traded within 3 cents of contract highs before falling apart today. On the September Dairy Products report, regular hard ice cream production totaled 62.4 million gallons, up 5.6% from last year.

AVERAGE CLASS III PRICES:

3 Month:	$17.00
6 Month:	$16.97
9 Month:	$17.11
12 Month:	$17.27

CHEESE:

For the week, blocks fell 3.25 cents with 13 loads traded. The weekly average price is $1.5820, down 12.75 cents from last week's average. Barrels declined 2.5 cents with no loads traded. The weekly average price is $1.72, down 0.30 cents from last week. Dry whey ended the week unchanged after trading higher midweek. There were no loads that traded. The weekly average price is 84.6 cents, an increase of 1.50 cents from last week. On the September Dairy Products report, total cheese output was 1.23 billion pounds, up 0.7% from last year and down 2.5% from the previous month. Dry Whey products totaled 71.7 million pounds, up 3.8% from last year.

BUTTER:

For the week, butter fell 6.75 cents with 40 loads traded. The weekly average price is $1.2895, down 2.5 cents from last week. Grade A nonfat dry milk increased by 7.25 cents, with nine loads traded. The weekly average price is $2.1765, up 10.45 cents from last week's average. On the Dairy Products report, total butter production was 204 million pounds, 10.9% above last year and 8.9% above August. Nonfat dry milk production was 129 million pounds, which was up 3.7% from last year. Skim milk powder production was 19.1 million pounds, down 58.8% from last year.

OUTSIDE MARKETS SUMMARY:

December corn closed up 1.50 cents per bushel at $4.4150, January soybeans closed up 5.50 cents at $11.9375 and December soybean meal closed up $2.00 per ton at $319.20. December Chicago wheat closed down 8.00 cents at $5.9125.

December live cattle closed down $0.35 at $214.05. December crude oil is down $0.11 per barrel at $90.41. The Dow Jones Industrial Average is down 237 points at 51,285 and the NASDAQ is up 264 points at 24,579.