Wednesday Closing Dairy Market Update - Dairy Exports Up 13.8%

GENERAL OVERVIEW:

USDA on Wednesday released U.S. export data through September showcasing a strong year for dairy products. Class and Component prices for October were announced Wednesday afternoon as well. Class II and IV are higher from last month while Class III price was down.

MILK:

Class II price was $19.25 per hundredweight for October, up $1.55 from last month. Class III price fell 88 cents to $15.16 while Class IV climbed $1.60 at $20.54. Class II increased $3.13 year-over-year and Class IV increased $6.24 from October of last year. Class III, on the other hand, fell $1.75 year over year. Export data was also released Wednesday afternoon. For dairy, the U.S. exported $8.08 billion worth of products from January through September, up 13.8% from the same time frame last year. Class III milk futures were mixed Wednesday, with trade 10 cents lower to 10 cents higher. Class IV was down 22 cents on the January contract. Nonfat dry milk was mixed, trading 0.75 cents lower to 0.975 cents higher.

AVERAGE CLASS III PRICES:

3 Month:	$17.85
6 Month:	$17.16
9 Month:	$17.25
12 Month:	$17.40

CHEESE:

Cheese futures were also mixed Wednesday with trade anywhere from 0.3 cents lower to 0.8 cents higher, lacking direction until the market receives further news. Thursday's Dairy Products report might be the deciding factor to break this choppy pattern.

BUTTER:

Butter fell 1.75 cents in the spot market Wednesday, adding to lower daily trade seen all week. Futures fell further, trading as much as 3.5 cents lower. For the export report, butter exports for the U.S. were up 16% from last year at this time for a total of $398.2 million worth of products.

OUTSIDE MARKETS SUMMARY:

December corn closed up 1.75 cents per bushel at $4.4425, January soybeans closed down 11.75 cents at $12.0225 and December soybean meal closed up $.60 per ton at $318.60. December Chicago wheat closed down 1.25 cents at $5.9850.

December live cattle closed down $0.15 at $218.00. December crude oil is down 7.97 per barrel at $88.12. The Dow Jones Industrial Average is up 1,569 points at 53,356 and the NASDAQ is up 364 points at 25,736.

Wednesday Midday Dairy Market Summary - Butter Falls Again

OUTSIDE MARKETS SUMMARY:

CORN:	4 Higher
SOYBEANS:	5 Lower
SOYBEAN MEAL:	$2.30 Higher
LIVE CATTLE:	$0.425 Lower
DOW JONES:	1500 Higher
NASDAQ:	515 Higher
CRUDE OIL:	$7.81 Lower

MIDDAY MARKET UPDATE:

The block cheese price increased by 1 cent to close at $1.5875 with five loads traded. The barrel cheese price was unchanged at $1.7250 with no loads traded. Dry Whey increased 1 cent to close at 85.0 cents with no loads traded. Class III futures are mixed, trading 7 cents lower to 12 cents higher. The butter price decreased by 1.75 cents, closing at $1.28 with no loads traded. There were four bids and four offers remaining at the close. Grade A nonfat dry milk increased 2.75 cents to close at $2.1875 with two loads traded. Class IV futures are trading 22 cents lower on the January contract. Butter futures are 1.5 to 2 cents lower. Dry whey futures are 1 cent lower to 1 cent higher. Cheese futures are 0.1 cent lower to 1.2 cents higher. Nonfat dry milk futures are 0.5 cents lower to 1 cent higher.

Wednesday Morning Dairy Market Update - US Exports To Be Released Today

OPENING CALLS:

Class III Milk Futures:	1 to 10 Higher
Class IV Milk Futures:	Mixed
Butter Futures:	0.50 to 1.50 Lower

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	1 to 2 Lower
Soybean Futures:	8 to 12 Lower
Soybean Meal Futures:	$1.50 to $2.00 Lower
Wheat Futures:	1 to 2 Lower

MILK:

Class III futures trading 1 to 5 cents higher Wednesday morning. The Global Dairy Trade (GDT) auction took place Tuesday with an overall increase of 3% from October's auction. Whole milk powder along with skim milk powder traded higher while anhydrous milk fat traded lower. Nonfat dry milk (NDM) has been having a big rally this week, continuing the momentum that started last week. Futures have had expanded limits for three consecutive trading days as a limit move higher happened last week, expanding the daily limit to 8 cents. Since then, NDM has had at least one contract month's trade above the usual 4 cent limit every day, keeping the expanded limits in place. Prices have not yet surpassed the October high but are very close to doing so.

CHEESE:

Cheese's multiweek rally seems to have come to an end with a large sell-off in the cash market on Friday and choppy trade ever since. Supplies are steady, and production is going strong. Micro batches are being produced to focus on holiday specialty product demand, but overall, there is little reason for the market to rally further unless retail demand grows stronger.

BUTTER:

Tuesday's GDT auction highlighted what the market has been seeing for butter. There is some added demand domestically, however, the market is wanting more exports. The world has a comfortable supply of butter, but what the world wants is high protein, low-fat products.