MILK
Milk futures extended their price gains Thursday, supported by higher spot prices. Cheese prices moved significantly higher over the past two days, turning traders more aggressive with their buying of futures. Milk production in the Central Region of the country has increased fairly rapidly once cooler weather moved in. It certainly is far from gaining by leaps and bounds, but seasonal gains will be the norm across the country as well. USDA released the August Agricultural Prices report showing the average prices of many products for the month. The income over feed for the month was $5.25. This is the result of the calculation from a corn price of $6.32. A soybean meal price from the central Illinois soybean processors report of $358.21 per ton. An alfalfa hay price of $206 per ton. A premium/supreme hay price of $238 per ton. The blended alfalfa price was $222 per ton. The all-milk price for the month was $17.70 per cwt. The corn price increased $0.20 from July. Soybean meal declined $7.02 per ton, alfalfa hay increased $5 per ton, Supreme/premium alfalfa increased $6 per ton and the all-milk price declined $0.20 per cwt. This results in a payment of $4.25 per cwt for those who chose the $9.50 level in the Dairy Margin Coverage program and have not yet reached their cap of 5 million pounds of milk.
AVERAGE CLASS III PRICES
| 3 Month: | $18.08 |
| 6 Month: | $17.87 |
| 9 Month: | $17.86 |
| 12 Month: | $17.88 |
CHEESE
Block cheese broke above the sideways trading range it has been in for quite some time. It is possible price may trend higher for a period as buyers are increasing purchases in preparation of the holidays. Although supplies are readily available, buyers are increasing ownership to fill orders and prepare for increased retail demand. Blocks are now at the highest level since Jan. 14.
BUTTER
Price just continues to shop around with no specific direction. Churning is variable across the country depending on cream availability and prices. Some reports indicate higher cream supply than anticipated at this time of year, but certainly not burdensome. Others report higher spot cream prices due to reduced availability. Orders for butter are anticipated to steadily improve as the year progresses.
OUTSIDE MARKETS SUMMARY
December corn closed 2.25 cents lower at $5.3675. November soybean fell 27.75 cents to $12.56 with October soybean meal down $11.90 at $326.20 per ton. December wheat jumped 15.25 cents, closing at $7.2550. October live cattle fell $1.20 at $120.57. November crude oil gained $0.20, ending at $75.03 per barrel. The Dow fell 547 points, closing at 33,844, while the NASDAQ fell 64 points, closing at 14,449.
