MILK
Futures set back Tuesday even though underlying cash left the milk price calculation basically unchanged. Yet, Class III futures declined with October through December posting double-digit losses. The decline of blocks after reaching the top of the price range sent increased negativity through the market. Milk production has been holding steady over the past few weeks but remains higher than last year. Over the previous five years, the Central Region of the country showed the greater gain in milk production. Milk production in the region is up 11.7% from the period of 2015 through 2020. The Western Region increased milk production by 5.7%. The Eastern Region of the country showed a decrease of milk production by 0.8% over the period of time. The Central Region produced 43% of the nation's milk while the Western Region produced 40% of the nation's milk. The Eastern Region produced the other 17% of the total milk produced in the country. The trend will continue for larger farms. Sen. Kirsten Gillibrand, D-N.Y., chair of the U.S. Senate Agriculture Subcommittee on Livestock, Dairy and Poultry, is holding a hearing this Wednesday, Sept. 15, 8:30 a.m. CDT to address declining milk prices and impacts to dairy farmers.
Sen Gillibrand said: "Unfair trade practices from foreign countries, increasing production costs, and a drop in milk consumption have led to an increasingly unstable dairy market, and farmers are suffering the most. The cost of milk production is higher sometimes than the reimbursement rate, and that puts businesses out of business. It puts our dairy farmers in a tough place, and a lot of our dairies as a consequence have closed."
AVERAGE CLASS III PRICES
| 3 Month: | $16.99 |
| 6 Month: | $17.19 |
| 9 Month: | $17.32 |
| 12 Month: | $17.41 |
CHEESE
Cheese prices are unable to find consistent buying interest. A rise in price is met with sellers willing to take advantage of higher prices in order to move product and limit inventory build. Supply has not tightened sufficiently to keep buyers aggressive as they increase ownership of supply for higher demand through the end of the year. Cheese remains available without having to chase after it.
BUTTER
Price moved above the most recent high, keeping the uptrend intact. Price has moved to the highest price since May 21. This certainly is positive, increasing the possibility of price being able to reach back to highs in April of $1.9050. With a tightening cream supply and increasing demand, the uptrend should remain intact.
OUTSIDE MARKETS SUMMARY
December corn gained 7 cents, closing at $5.2025. November soybeans declined 2.25 cents, ending at $12.8250, with October soybean meal down $3.50, closing at $338.00 per ton. December wheat jumped 13.75 cents, closing at $7.0075. October live cattle jumped $1.85, ending at $124.12. October crude oil declined $0.40 ending at $80.37. The Dow declined 292 points, closing at 34,578, while the NASDAQ declined 68 points, closing at 15,038.
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