Monday Closing Dairy Market Update - Milk Futures Mixed

GENERAL OVERVIEW:

Milk futures started off strong in the overnights but lost momentum midway through the day. Butter had another disappointing day in the cash market, pressuring futures.

MILK:

Hot temperatures return to many parts of the country this week for an extended period, bringing late-summer concerns for milk production on a short-term basis. Class III and Class IV milk futures started off higher on the early morning trade session but quickly lost ground in the day trade. Dry whey and non-fat dry milk were the market leaders near the close with the only consistently higher prices. Both traded 0.75 cent to 1.5 cents higher.

AVERAGE CLASS III PRICES:

3 Month:	$16.87
6 Month:	$17.10
9 Month:	$17.25
12 Month:	$17.38

CHEESE:

Cheese prices are struggling to find support, with the availability of milk being plentiful and demand lacking. Holiday buying has not yet begun, and consumer demand is steady. Both blocks and barrels were unchanged with no loads traded in the cash market on Monday.

BUTTER:

Cream availability is abundant as seen in the cash market. The sheer number of loads offered has been huge recently, showing manufacturers trying to find buyers for the large quantity of butter available. Last week, the Midwest region did sell some cream for export to Mexico, but that did little to nothing for controlling the abundant supply. Butter was down 1.25 cents in the cash market and off 2.257 to 3.475 cents in the futures market.

OUTSIDE MARKETS SUMMARY:

December corn closed up 1.25 cents per bushel at $5.3775, November soybeans closed steady at $12.8800 and December soybean meal closed down $3.60 per ton at $345.30. December Chicago wheat closed down 10 cents at $7.7400. October live cattle closed up $0.95 at $212.68. October crude oil is up 2.94 per barrel at $86.34. The Dow Jones Industrial Average is down 374 points at 53,185, and the NASDAQ is down 31 points at 26,370.

Monday Midday Dairy Market Summary - Milk Futures Lose Ground

OUTSIDE MARKETS SUMMARY:

CORN:	1 Higher
SOYBEANS:	2 Higher
SOYBEAN MEAL:	$0.33 Lower
LIVE CATTLE:	$0.72 Lower
DOW JONES:	328 Points Lower
NASDAQ:	97 Points Lower
CRUDE OIL:	$2.48 Higher

MIDDAY MARKET UPDATE:

The block cheese price was unchanged at $1.4825 with no loads traded. There were three uncovered offers remaining at the close of spot trading. The barrel cheese price was unchanged at $1.5650 with no loads traded and no bids or offers. The dry whey price was also unchanged at 73.75 cents with no loads traded and one bid and offer unfulfilled at the close. Class III futures are 8 cents lower to 4 cents higher. The butter price lost 1.25 cents to close at $1.45 with 18 loads traded. There were 10 unfilled bids and 82 uncovered offers remaining at the close. Grade A nonfat dry milk gained 0.50 cents to close at $1.870 with no loads traded. Class IV futures are 5 to 11 cents higher. Butter futures are 3.375 cents lower. Dry whey futures are 0.75 to 1.525 cents higher. Cheese futures are 0.3 cent to 0.90 cent lower. Nonfat dry milk futures are 1.15 to 2.075 cents higher.

Monday Morning Dairy Market Update - Class III Milk Opens Higher

OPENING CALLS:

Class III Milk Futures:	5 to 15 Higher
Class IV Milk Futures:	5 to 15 Higher
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	Mixed
Soybean Futures:	3 to 5 Lower
Soybean Meal Futures:	$0.30 to $0.50 Lower
Wheat Futures:	10 to 12 Lower

MILK:

Schools are back in session across the country, bringing additional bottled milk demand. Many are already offering whole milk options for the first time since the Obama era. Another heat wave is hitting many parts of the country this week, bringing additional concern over short-term cow comfort and lower temporary milk production volumes.

CHEESE:

Cheese is struggling to find much ground to stand on with steady to lower demand. Much of the market is in a waiting game to see how much buying will occur and when for seasonal needs. Today, demand is limited despite it being this early in the season.

BUTTER:

Butter cash values were flat week-over-week. Churning is steady with plenty of cream available, although the Midwest region saw some demand from Mexico, while not enough to significantly change the availability of product. Much like the cheese market, butter is waiting for the anticipated holiday-season buying to begin. However, with the availability of butter in the cash market, it may have quietly already begun.