Friday Midday Dairy Market Summary - Cheese Rally Still Going Strong

OUTSIDE MARKETS SUMMARY:

CORN:	3 Lower
SOYBEANS:	2 Lower
SOYBEAN MEAL:	$3.20 Lower
LIVE CATTLE:	$1.375 Higher
DOW JONES:	119 Points Lower
NASDAQ:	418 Points Lower
CRUDE OIL:	$2.30 Higher

MIDDAY MARKET UPDATE:

The block cheese price increased 3 cents to close at $1.6825 with no loads traded. The barrel cheese price increased 5 cents to close at $1.6200 with no loads traded. Only bids were left standing at the close with blocks seeing four remaining and barrels seeing eight. The dry whey price set another new record high for the third time this week, at 89.5 cents, an increase of 0.50 cents. There were two loads traded. Class III futures are 2 to 26 cents higher. The butter price closed 2 cents higher at $1.3650 with five loads traded. There were three bids remaining and 60 offers at the close. Grade A nonfat dry milk increased 1.25 cents to close at $2.1625 with no loads traded. Class IV futures are 3 cents lower in the nearby contracts to 42 cents higher in the deferred. Butter futures are 1.475 to 2.95 cents higher. Dry whey futures are 0.375 to 1.25 cents higher. Cheese futures are 0.1 cent higher nearby to 0.2 cents lower on the December contract. Nonfat dry milk futures are 0.025 cents lower in October to 7.95 cents higher on the November.

Friday Morning Dairy Market Update - Livestock, Dairy and Poultry Outlook Report Today

OPENING CALLS:

Class III Milk Futures:	8 to 13 Lower
Class IV Milk Futures:	Mixed
Butter Futures:	0.5 to 1.5 Higher

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	1 to 2 Lower
Soybean Futures:	3 to 4 Lower
Soybean Meal Futures:	$2 to $3 Lower
Wheat Futures:	5 to 10 Lower

MILK:

Class III milk futures have been on a big run higher this week. Since Friday's (Oct. 9) settlement, the November contract has climbed $1.15. Thursday, we saw a big start to the day with futures slowly pulling back by the final bell. The speed at which the market has rallied makes sense that we could be due for a small setback during Friday's trade. Class III futures started the night down 11 to 16 cents. By morning, futures were mixed from 15 cents lower to 6 cents higher. Nonfat dry milk has struggled midweek. After the spot market denied reaching new record highs, pressure set in and sellers took over letting product or positions go. This has weighed heavily on Class IV futures.

CHEESE:

What a day cheese had in the spot market Thursday. Blocks launched 12.25 cents higher while barrels finally decided to join in on the fun and rallied 11.75 cents. Holiday buying is the most likely cause for the sudden interest in cheese. Much like many other dairy products, futures rallied early on into midday but lost ground by the afternoon. Overnights are trading 0.2 to 1.3 cents lower.

BUTTER:

Butter has been less flashy about its rally this week as it has been overshadowed by cheese and dry whey momentum. The strength has been impressive in the face of high cream volumes available. Most likely, buyers are looking at the calendar and the shrinking 82% butterfat butter and are done waiting for a better opportunity to get needs bought.

Thursday Closing Dairy Market Update - Volatility in Futures

GENERAL OVERVIEW:

Dry whey reached another new high today in the spot market while futures fell apart. Cheese and Butter follow along with cash trade, leading futures higher while NFDM slips lower.

MILK:

Class III futures started off the day with over 40 cents higher on the November contract but lost some ground by this afternoon. While futures at the time of settlement were still trading higher, currently there are deferred contracts trading lower, while the November is still up 33 cents. Class IV Milk settled 17 to 39 cents lower. Milk has an uphill battle with the amount of production the United States has produced this year. The components have given some excitement to Class III futures, although the market is feeling heavy with how quickly the market has rallied this week despite a substantial change in the abundance of product available.

AVERAGE CLASS III PRICES:

3 Month:	$16.60
6 Month:	$17.01
9 Month:	$17.20
12 Month:	$17.37

CHEESE:

Cheese prices had a big move higher today. Cheddar Cheese Blocks jumped 12.25 cents higher while Barrels rallied 11.75 cents. No loads of barrels actually traded; however, this was the first price move in nearly a month. Futures initially traded higher, especially around the spot price trade, yet lost a little of the gains by this afternoon. Stocking up on holiday needs seems to be the cause of the cheese firmness this week. Mozzarella and Provolone were the highest demand on last Friday's market recap, so we'll get a better look tomorrow on what is trading in each region.

BUTTER:

Butter futures had a mixed day. The October contract did not trade as we approach the end of that contract. November settled 1 cent higher but was trading 2 cents higher in the late afternoon trade. December was off 0.475 cents at settlement. Fundamentals have not changed for butter. Availability is high, and cream supplies are not slowing down.

OUTSIDE MARKETS SUMMARY:

December corn closed down 2.75 cents per bushel at $4.7800, November soybeans closed down 14.25 cents at $12.6300 and December soybean meal closed down $4.70 per ton at $359.80. December Chicago wheat closed down 3.25 cents at $6.7000.

December live cattle closed up $2.13 at $227.25. November crude oil is up 2.60 per barrel at $97.69. The Dow Jones Industrial Average is up 556 points at 52,177 and the NASDAQ is up 20 points at 26,713.