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

Monday Closing Dairy Market Update - Markets All Higher, Except Butter

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.

Monday Midday Dairy Market Summary - Butter Futures Fall

OUTSIDE MARKETS SUMMARY:

CORN:	1 Lower
SOYBEANS:	6 Higher
SOYBEAN MEAL:	$0.25 Lower
LIVE CATTLE:	$1.125 Lower
DOW JONES:	478 Points Lower
NASDAQ:	802 Point Lower
CRUDE OIL:	$2.71 Higher

MIDDAY MARKET UPDATE:

The block cheese price increased by 0.25 cents to close at $1.60 with no 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 22 to 34 cents higher. The butter price decreased by 2.5 cents, closing at $1.3325 with 11 loads traded. There were 25 bids and 10 offers remaining at the close. Grade A nonfat dry milk increased 1.25 cents to close at $2.1250 with no loads traded. There were 5 bids and 3 offers left at the close. Class IV futures have not yet been traded today. Butter futures are 2.75 to 6.125 cents lower. Dry whey futures are 0.85 to 1.25 cents higher. Cheese futures are 0.6 to 2.3 cents lower. Nonfat dry milk futures are 0.95 to 4.4 cents higher.