MILK
December Class III futures made a new low Tuesday since the high set in October. Traders are trying to anticipate how low cheese prices may move before the December contract is priced. The higher block price over the past two days and a steady barrel price Tuesday is increasing the anxiousness of traders over whether the market might have found a bottom. However, this is not triggering aggressive buying at this point as fundamentals do not support any sustained increase of prices. More milk will be available to the market over the rest of the week as bottling demand slows with some plants closing for the holiday. More spot milk will be available at lower prices in order to entice manufacturing plants to purchase extra supply. One problem is that many plants are running near capacity already and may not be overly willing to purchase extra supply. This could deepen the discount of spot milk.
AVERAGE CLASS III PRICES
| 3 Month: | $18.36 |
| 6 Month: | $17.40 |
| 9 Month: | $17.19 |
| 12 Month: | $17.15 |
CHEESE
The trend in cheese is still down. The bounce of the past two days in blocks has not changed the overall market direction. It certainly has been positive to see some buying interest with limited seller interest. However, it is likely just a flash in the pan. It would be positive to see the market move sideways for a period rather than the relentless decline we have experienced the past few weeks. Buyers are purchasing to fill orders as they come in and not purchasing in anticipation of demand. Some aging programs are being replenished due to lower prices.
BUTTER
Butter continues to slowly grind lower. Price will eventually reach a level at which buyers may take a stand, as it is attractive to purchase even if it needs to be stored for a while. It will reach a level where there will be limited downside risk. More cream will be available the rest of this week keeping churns busy and plenty of fresh product available.
OUTSIDE MARKETS SUMMARY
December corn slipped 0.75 cent, ending at $4.2575. January soybeans slipped 0.25 cent, ending at $11.9125, with December soybean meal up $3.40 per ton, closing at $398.30. December wheat jumped 12.50 cents, ending at $6.1125. December live cattle jumped $111.17. January crude oil gained $1.85, closing at $44.91 per barrel. The Dow jumped 455 points, closing above 30,000 for the first time. The NASDAQ gained 156 points, ending at 12,037.
 |
| #completecalfcare |
