MILK
November Class III futures were able to close back above $17 again at least for Monday. This is the highest close since Sept. 13. However, the strength does not mean the trend has changed. It was just a nice bump higher due to underlying cash being supportive. Traders will remain very cautious as the choppy market pattern is likely not going to change anytime soon. It does make one feel better when price increases after prices have generally been exhibiting weakness for quite some time. Milk production has been mixed in general. Bottling demand has leveled off as school pipelines have been filled and retail demand is steady. Some plants are scheduling downtime or maintenance prior to the consistent increase of milk production and higher consumer demand that is generally seen from now through the holidays.
AVERAGE CLASS III PRICES
| 3 Month: | $17.11 |
| 6 Month: | $17.24 |
| 9 Month: | $17.36 |
| 12 Month: | $17.47 |
CHEESE
At least both categories of cheese moved in the same direction, and that was higher. The block-barrel spread moved closer together with the spread now at 9 cents. Plants are trying to keep up with demand but are having difficulty in some instances due to a shortage of workers. This has been a lingering problem since last year and does not seem to be getting much better. Not only that, but there is a shortage of truck drivers to haul both milk and finished product. Demand is slowly improving as buyers prepare for the holidays.
BUTTER
There is a sufficient supply of butter to meet demand, but the fact that inventory is now below a year ago indicates strong demand. It has been quite some time since inventory has been below the previous year. There is little hope for butter to trend higher anytime soon. Buyers continue to increase ownership without the need to bid up the market. Retail demand is slowly increasing.
OUTSIDE MARKETS SUMMARY
December corn jumped 12.75 cents, closing at $5.3950. November soybeans gained 2.50 cents, ending at $12.8750, with October soybean meal up $1.20 per ton, ending at $337.20. December wheat slipped 1.50 cents, closing at $7.2225. October live cattle declined $0.52, closing at $122.40. November crude oil jumped $1.47, closing at $75.45 per barrel. The Dow gained 71 points, closing at 34,869, while the NASDAQ declined 78 points, closing at 14,970.
