MILK
Class III milk futures closed mixed with the most pressure put on the November and December contracts. The jump of prices Thursday was a bit overdone and in need of a price correction in order to keep futures somewhat in line with cash while at the same time keeping some premium. It was a surprise to see November futures nearly reach back to $20 this week, but futures have fallen 38 cents from the high. Block cheese price has yet to move above the trading range it has been in since November 2020. Milk production has been slowing as culling has been increasing due to high feed prices. Production per cow has been running below a year ago for the past two months, providing some support to the market. Although higher prices are certainly good to see, we cannot be confident that this will continue. Nothing is ever certain in this market except for volatility.
AVERAGE CLASS III PRICES
| 3 Month: | $18.97 |
| 6 Month: | $18.76 |
| 9 Month: | $18.63 |
| 12 Month: | $18.58 |
CHEESE
For the week, block price increased 3 cents with only one load traded. Barrels increased 7.25 cents with 19 loads traded. Dry whey increased 1.50 cents with two loads traded. This movement pushed milk futures higher. USDA released the September Cold Storage report Friday, which was not real friendly to the market due to cheese inventory increasing. American cheese inventory totaled 844.1 million pounds, up 17.0 million pounds or 2% above August. This is 9% higher than a year ago. Other cheese inventory totaled 592.2 million pounds, up 8.6 million pounds or 6% higher than last year. Swiss cheese inventory declined 205,000 pounds, totaling 22.3 million pounds. This is 7% higher than last year. Total cheese inventory reached 1.459 billion pounds. This was an increase of 25.5 million pounds above August and is 8% above a year ago.
BUTTER
The cold storage report was bullish for butter with inventory declining in September. Butter stocks totaled 330.1 million pounds. This is a decrease of 32.6 million pounds with inventory now 4% below a year ago. For the week, butter price increased 6 cents with 30 loads traded. Grade A nonfat dry milk price increased 0.50 cent with 15 loads traded.
OUTSIDE MARKETS SUMMARY
December corn gained 5.75 cents, closing at $5.38. November soybeans declined 3.50 cents, closing at $12.2050, with December soybean meal up $3.40 per ton, closing at $327.40. December wheat jumped 14.75 cents, ending at $7.56. October live cattle declined $0.87, ending at $124.10. November crude oil jumped $1.27, closing at $83.76 per barrel. The Dow gained 74 points, closing at 35,677, while the NASDAQ fell 126 points, closing at 15,090.
