GENERAL OVERVIEW:
Futures made some impressive moves to start on the week and the month of November with some strength. Class III futures were 25 to 34 cents higher, Grade A nonfat milk futures were 1.5 to 5.52 cents higher, continuing with its strong rally with expanded futures limits. Cheese and dry whey also had some small gains on the day while butter futures were the odd one out with contracts moving 2.25 to 4.175 cents lower on the day.
MILK:
Class III futures had a strong move higher today with increases of 25 to 34 cents across the board. Milk supplies across the country are varied with tightness in the East and Central regions, while the West is described as "heavy". Eggnog demand is increasing as the holidays are approaching. In the month of September, 12.9 billion pounds of milk were received from Federally pooled producers, 11.7% higher than the volume from September 2025. Conventional milk advertisements increased 21% last week with the conventional gallon size up 41%, but down from this week last year. Organic milk ads were down 41% this week. The average price for conventional gallons is $3.72, up 21 cents week over week.
AVERAGE CLASS III PRICES:
| 3 Month: | $16.76 |
| 6 Month: | $16.90 |
| 9 Month: | $16.03 |
| 12 Month: | $17.21 |
CHEESE:
Cheese prices climbed higher today as futures were 1.7 to 2.7 cents higher on the day. Advertisements for last week focused on 6-to-8-ounce blocks of cheese as the most advertised variety while sliced cheese led the way for organic advertisements. Nationally, cheese supply and demand was described as steady. Bulk inventories were moving in the Midwest where excess supply has been worrisome before. Cheese plants are maintaining active production schedules with firm retail demand for barrels and curds.
BUTTER:
Butter futures were down 2.25 to 4.175 cents today. Butter demand has been stronger in the West while the stakeholders report shows the East and Central regions to be steady. Exports have been similar, ranging from strong to steady. Seasonal butter production has become more active as micro-fixing has ramped up. Supplies have been plentiful. Butter production is in full force in the East with churns running 6 days a week. In the West, they are noticing that export demand is strong, however, they are describing buyers as "price sensitive".
OUTSIDE MARKETS SUMMARY:
December corn closed up .50 cent per bushel at $4.4825, January soybeans closed down 17.50 cents at $12.1675 and December soybean meal closed down $5.00 per ton at $319.60. December Chicago wheat closed up 3.00 cents at $6.0650.
December live cattle closed down $1.25 at $219.70. December crude oil is down 7.69 per barrel at $96.43. The Dow Jones Industrial Average is up 213 points at 51,983 and NASDAQ is down 272 points at 25,164.
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