Thursday Midday Dairy Market Summary - Nonfat Dry Milk Moves to a New Low

OUTSIDE MARKETS SUMMARY:

CORN:	7 Lower
SOYBEANS:	7 Lower
SOYBEAN MEAL:	$2.90 Higher
LIVE CATTLE:	$3.22 Lower
DOW JONES:	104 Points Lower
NASDAQ:	302 Points Lower
CRUDE OIL:	$0.62 Lower

MIDDAY MARKET UPDATE:

The block cheese price increased 0.50 cent to close at $1.6000 with no loads traded. The barrel cheese price increased 0.25 cent to close at $1.6025 with no loads traded. Prices were moved higher on bids, with only one offer posted for blocks with no interest in lowering the offer to accomplish business. The dry whey price decreased 0.50 cent to close at 69.50 cents with no loads traded. Class III futures were higher before spot trading and maintained the strength after trading concluded. Futures are steady to 58 cents higher, with August showing the greatest strength. The butter price increased 0.25 cent to close at $1.5875 with 16 loads traded. The price initially increased to $1.6000 before selling pressure caused the price to slide back. Grade A nonfat dry milk decreased 2.75 cents to close at $1.4725 with 13 loads traded. The price moved below the previous low of last week to move to the lowest level since February 2nd. Class IV futures are 14-29 cents lower. Butter futures are 1.00 cent lower to 0.82 cent higher. Dry whey futures are 0.35 -- 1.25 cents higher. Cheese futures are steady to 5.10 cents higher. Nonfat dry milk futures are 2.50 cents lower to 0.82 cent higher

Thursday Morning Dairy Market Update - Traders Show Optimism in Overnight Trade

OPENING CALLS:

Class III Milk Futures:	8 to 15 Higher
Class IV Milk Futures:	Mixed
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

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

MILK:

Class III milk futures rebounded overnight with the expectation that cheese prices will remain supported and potentially increase as buyer interest improves. If there is any impact on buying interest due to hot weather and reduced milk output, it is considered to be psychological. Even with reduced milk production, there is sufficient milk available for demand. An increase in demand would provide fundamental support and at least maintain milk futures at the current levels. There is no indication culling has been increasing. This will keep cow numbers high. Calf prices may have decreased recently as a result of lower cattle prices, but that is not expected to last long as cattle numbers are low and beef demand will improve after the seasonal decline. Significant income from calves will continue keeping farms profitable despite lower milk prices.

CHEESE:

Cheese prices have had a nice uptrend and are nearing the highs of early May. Prices may have difficulty moving above that level unless production stabilizes and demand improves. However, the weakness in the butter price may be a limiting factor. The strength or weakness of butter is generally a barometer of cheese, as it historically indicates price potential.

BUTTER:

The weakness in butter on Wednesday was a surprise, as it seemed the market was finding support. The price remains in a sideways trend with supply and demand balanced

Wednesday Closing Dairy Market Update - Choppy Futures Dominate

GENERAL OVERVIEW:

There was not much excitement generated in milk futures, with limited price fluctuation. It is as if the market is on hold for the time being. The best that can be said for milk futures is that they have not fallen back to the levels of nearly two weeks ago.

MILK:

Milk futures experienced a recent push higher but have since retraced some of the gains. The underlying cheese and dry whey prices are supportive of Class III futures. However, traders have not been very aggressive buyers of contracts. Class IV futures did not see the pressure that would have been anticipated based on the lower butter and nonfat dry milk prices today. Traders are not chasing the market one way or the other unless there is a greater indication of price direction. Milk production is declining seasonally, being impacted by rising temperatures. Milk output is not expected to fall below the levels of last year, keeping sufficient supply available for bottling and manufacturing demand.

AVERAGE CLASS III PRICES:

3 Month:	$16.76
6 Month:	$17.27
9 Month:	$17.32
12 Month:	$17.35

CHEESE:

Spot milk prices have increased from the previous week. The hot weather has had an impact on milk output, resulting in less milk moving to the spot market. Cheese plants that need to purchase extra milk are paying from $2.00 under class to as much as $5.00 over class. Some plants are not operating on full production schedules, anticipating milk receipts will improve after the hot weather subsides, as the forecast indicates.

BUTTER:

The Central region reports that the hot weather is impacting cream production more than anticipated. Most plants have reduced their production schedules, but it has not impacted the spot butter market so far. The spot price decline today was more than anticipated, indicating that sellers have butter to move and are willing to sell at lower prices. Butter supplies remain ample for demand.

OUTSIDE MARKETS SUMMARY:

December corn closed up 9.00 cents per bushel at $4.6950, November soybeans closed up 10.75 cents at $12.0175, and December soybean meal closed up $3.70 per ton at $320.00. September Chicago wheat closed up 32.50 cents at $6.7750. August live cattle closed down $1.30 at $230.13. August crude oil is up $0.92 per barrel at $80.26. The Dow Jones Industrial Average is up 150 points at 52,659, with the NASDAQ up 162 points at 26,269.