Tuesday Closing Dairy Market Update - Global Dairy Trade Up 3%

GENERAL OVERVIEW:

The Global Dairy Trade auction took place today with the GDT Price Index up 3.0% from the October 20 auction. The average winning price was $4,166 with the biggest gains seen in Cheddar, Mozzarella and Whole Milk Powder.

MILK:

Class III futures ended the day lower with afternoon trade down 7 to 15 cents lower. Class IV had limited trading activity however the December contract was trading 10 cents higher near the close. The GDT auction took place Tuesday morning with the index pricing higher for the third auction in a row. There were 166 participating bidders and 39,806 MT were sold. The average price was up 3%. Anhydrous Milk Fat was down 3.2%, Lactose was up 3.3%, Skim Milk Powder was 3.1% higher and Whole Milk Powder was up 5.9%.

AVERAGE CLASS III PRICES:

3 Month:	$16.66
6 Month:	$16.82
9 Month:	$16.98
12 Month:	$17.18

CHEESE:

Cheese futures traded on both sides of the market Tuesday with some early morning gains, midday trading lower and nearly back even by closing calls. The market was 0.8 to 1.5 cents lower at settlement. In the GDT auction, cheese prices were some of the biggest leaders in price increases from the October 20 auction. Cheddar had the highest gains of 8.6%, trading at $3,970. Mozzarella increased 5.8% at $4,104.

BUTTER:

Butter futures were trading 0.5 to 3.8 cents lower Tuesday afternoon after a disappointing day in the spot market with cash prices down 3.5 cents. In the GDT auction, butter was down 4.7% at $4,503 and Buttermilk Powder was down 4.4% at $4,312.

OUTSIDE MARKETS SUMMARY:

December corn closed down 5.75 cents per bushel at $4.4250, January soybeans closed down 2.75 cents at $12.1400 and December soybean meal closed down $1.60 per ton at $318.00. December Chicago wheat closed down 6.75 cents at $5.9975.

December live cattle closed down $1.55 at $218.15. December crude oil is down .37 per barrel at $96.09. The Dow Jones Industrial Average is down 197 points at 51,786 and the NASDAQ is up 207 points at 25,372.

Tuesday Midday Dairy Market Summary - Butter and Blocks Lower

OUTSIDE MARKETS SUMMARY:

CORN:	5 Lower
SOYBEANS:	3 Lower
SOYBEAN MEAL:	$1.40 Lower
LIVE CATTLE:	$0.575 Lower
DOW JONES:	148 Points Lower
NASDAQ:	271 Point Higher
CRUDE OIL:	$0.54 Lower

MIDDAY MARKET UPDATE:

The block cheese price decreased by 2.25 cents to close at $1.5775 with five loads traded. The barrel cheese price was unchanged at $1.7250 with no loads traded. Dry whey was unchanged at 84.0 cents with no loads traded. Class III futures are 8 to 24 cents lower. The butter price decreased by 3.5 cents, closing at $1.2975 with six loads traded. There were four bids and four offers remaining at the close. Grade A nonfat dry milk increased 3.5 cents to close at $2.16 with three loads traded. There were four bids and four offers left at the close. Class IV futures have not yet traded Tuesday. Butter futures are 0.25 cents higher to 4.05 cents lower. Dry whey futures are 0.9 to 1.25 cents higher. Cheese futures are 1.1 to 2.5 cents lower. Nonfat dry milk futures are 1.75 to 6.45 cents higher.

Tuesday Morning Dairy Market Update - Continued Market Strength Overnigh

OPENING CALLS:

Class III Milk Futures:	10 to 20 Higher
Class IV Milk Futures:	Mixed
Butter Futures:	0.50 to 1 Lower

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	1 to 2 Lower
Soybean Futures:	2 to 6 Higher
Soybean Meal Futures:	$0.50 to $1.00 Higher
Wheat Futures:	1 to 2 Lower

MILK:

Class III milk is trading 12 to 20 cents higher Tuesday morning. Later Tuesday morning, the Global Trade Auction will take place. Overall, supplies of milk are tight in the East and Upper Midwest, while the South is more comfortable and the West is flush with milk supply, especially in the Pacific Northwest and California.

CHEESE:

Monday's cheese rebound kicked off the month and the week with some continued support after Friday's disappointing close. Spot prices, while higher on Monday, have some ground to make up from Friday as well. Overall, cheese conditions are considered steady across the country. Production is steady and retail and food service demand is stable. In the West, they are seeing strong international demand.

BUTTER:

Butter had a rough start to the month with both futures and spot prices trading lower on Monday. Cream supplies are overall tighter across the country. Demand for butter in the East and Central regions is steady, and demand in the West is stronger. Export demand for both butter and cream is steady to strong. While cream supply is described as tighter, spot loads still seem to be readily available