Monday Midday Dairy Market Summary - Nonfat Dry Milk Plods Higher

OUTSIDE MARKETS SUMMARY:

CORN:	7 Higher
SOYBEANS:	23 Higher
SOYBEAN MEAL:	$1.80 Higher
LIVE CATTLE:	$0.90 Higher
DOW JONES:	327 Points Lower
NASDAQ:	76 Points Lower
CRUDE OIL:	$1.98 Higher

MIDDAY MARKET UPDATE:

The block cheese price slipped 0.25 cent to close at $1.5975 with no loads traded. The weakness with no buyers showed up during spot trading keeps a negative tone to the market. The barrel cheese price increased 0.25 cent to close at $1.5650 with no loads traded. The dry whey price increased 0.50 cent to close at 69.50 cents with no loads traded. Class III futures are 13 cents lower to 5 cents higher. The butter price increased 1.25 cents to close at $1.4725 with 21 loads traded. There were 24 unfilled bids and 52 uncovered offers remaining at the close of spot trading. Grade A nonfat dry milk increased 0.75 cent to close at $1.7525 with nine loads traded. Class IV futures are 4-15 cents higher. Butter futures are 0.90 -- 4.22 cents higher. Dry whey futures are unchanged to 0.25 cent lower. Cheese futures are 1.70 cents lower to 0.40 cent higher. Nonfat dry milk futures are 1.00 -- 3.95 cents higher.

Monday Morning Dairy Market Update - Traders Expect Limited Price Movement

OPENING CALLS:

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

OUTSIDE MARKET OPENING CALLS:

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

MILK:

Market fundamentals have changed little over the past weeks, leaving trading activity confined to scalping rather than long-term positions. Price increases have been met with increased selling pressure. Lower prices increased buying interest in the cash market. Market volatility is being exploited through short-term trades with limited profit. One could say the market is stuck. More milk is moving to bottling for school accounts, while milk production is improving and remains above a year ago, offsetting the shift in demand.

CHEESE:

Spot cheese prices are expected to remain range-bound as buyers and sellers take care of business. Buyers see little reason to purchase aggressively and build inventory, while sellers want to move supplies to limit building inventory. Prices will remain choppy.

BUTTER:

Butter remains in a downtrend with buyers able to purchase supplies without having to remain aggressive. Churning remains active, supplying sufficient butter for demand. The large volume of loads traded on the spot market is allowing buyers to purchase for immediate demand and upcoming demand without having to chase the market higher. This may reduce buying aggressiveness later in the year.

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.