October Milk Production up 0.4 Percent

October Milk Production up 0.4 Percent        

Milk production in the 24 major States during October totaled 18.0 billion pounds, up 0.4 percent from October 2023. September revised production, at 17.5 billion pounds, was up 0.5 percent from September 2023. The September revision represented an increase of 52 million pounds or 0.3 percent from last month's preliminary production estimate.  Production per cow in the 24 major States averaged 2,013 pounds for October, 4 pounds above October 2023.   The number of milk cows on farms in the 24 major States was 8.92 million head, 21,000 head more than October 2023, and 16,000 head more than September 2024.   

October Milk Production in the United States up 0.2 Percent  

Milk production in the United States during October totaled 18.7 billion pounds, up 0.2 percent from October 2023.  Production per cow in the United States averaged 1,996 pounds for October, 3 pounds above October 2023.  The number of milk cows on farms in the United States was 9.37 million head, 10,000 head more than October 2023, and 19,000 head more than September 2024. 

Wednesday Midday Dairy Market Summary - Butter Continues to Slide

OUTSIDE MARKETS SUMMARY:

CORN:	3 Higher
SOYBEANS:	7 Lower
SOYBEAN MEAL:	$0.90 Higher
LIVE CATTLE:	$0.15 Lower
DOW JONES:	126 Points Lower
NASDAQ:	181 Points Lower
CRUDE OIL:	$0.33 Lower

MIDDAY MARKET UPDATE:

The block cheese price increased 0.25 cent closing at $1.7250 with four loads traded. This is the fourth consecutive day of gain. The barrel cheese price increased by 0.50 cent closing at $1.73 with two loads traded. There was an unfilled bid and uncovered offer remaining in each category. The dry whey price remained unchanged at 64 cents with one load traded. Class III futures are 8 to 19 cents higher. The butter price declined 3.25 cents closing at $2.55 with 12 loads traded. This is another new low and the lowest price since Jan. 23. The price is lower than it was at the beginning of the year and at the level it was during the first half of January. Grade A nonfat dry milk remained unchanged at $1.40 with no loads traded. Class IV futures range from 5 cents lower to 5 cents higher. Butter futures are 0.12 -- 2.35 cents lower. Dry whey futures activity has been confined to the January contract at 0.50 cent higher. The USDA will release the October Milk Production report Wednesday afternoon. I estimate milk production to be 0.2% above a year ago with cow numbers up 3,000 head from September. Milk production should have remained strong compared to a year ago. 

Wednesday Morning Dairy Market Update - October Milk Production Report Today

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	1 to 2 Lower
Soybean Futures:	6 to 8 Lower
Soybean Meal Futures:	$0.50 to $1 Lower
Wheat Futures:	3 to 4 Lower

MILK:

The large decline in milk futures on Tuesday seemed to be a reaction to the weakness of barrel cheese and not the overall market. The gain in the block price more than offset the loss of barrels. Traders will be cautious on Wednesday, and those who sold the market on Tuesday may buy back those positions today if they have some profit. Traders are not trading positions for the long term but continue to scalp the market in hopes of making small profits. The USDA will release the October Milk Production report Wednesday. I estimate milk production to be 0.2% above a year ago with cow numbers up 3,000 head from September. Milk production should have remained strong compared to a year ago.

CHEESE:

Cheese prices could go either way today based on Tuesday's action. The weakness of barrels may have been sellers wanting to move supply more aggressively finding buyers at the lower price. It may not be that the price has reached a threshold. Further upside may be seen in blocks as buyers seemed to have turned more aggressive realizing they need to take advantage of these lower prices.

BUTTER:

The butter price may continue to struggle as the supply is larger than last year with production running higher than last year. Retail demand is improving as the holiday season approaches. Food service demand is lighter and not expected to improve much in the near term.