MILK
Milk production is improving seasonally, but it may take an increase to meet demand. Most indicate sufficient milk supply to cover needs. There are some plants shifting milk around to take care of plant maintenance before the busier holiday period begins. With the increase of milk production, spot milk is available in the Central Region for $0.25 to $1.25 under class. The amount of increase of milk production through the rest of the year may be limited if culling remains as strong as it has been. High feed prices will continue to have an impact throughout the rest of this year. The determining factor may be the strength of milk prices. If milk prices continue to improve, culling may slow, increasing the amount of milk available. This would likely cap milk prices. Stronger milk production will need to have increased demand or prices could follow a seasonal decrease by the end of the year. Both Class III and Class IV futures have been finding good support and moving higher. There are nine Class III contracts at or above $18.
AVERAGE CLASS III PRICES
| 3 Month: | $18.35 |
| 6 Month: | $18.14 |
| 9 Month: | $18.09 |
| 12 Month: | $18.11 |
CHEESE
Production facilities continue to voice the same problem, and that is the problem of employee shortages. One would think that after 1 1/2 years of dealing with COVID, things would be getting back to somewhat normal. However, that is far from the case as the logistics of production and transportation seem to be hindered as time progresses. Cheese continues to be produced and distributed, but not to the efficiency as it once was. It is unclear if this is bullish or bearish to the market at the present time.
BUTTER
Price is content to remain near the current level. Some plants have reduced production to take care of maintenance. Others have limited production rather than purchase higher-priced cream from the spot market. Overall, the market balance with demand being readily satisfied.
OUTSIDE MARKETS SUMMARY
December corn gained 1.75 cents, closing at $5.34. November soybeans gained 5.25 cents, closing at $12.4725, with October soybean meal declining $2.80, closing at $318.80 per ton. December wheat declined 4.75 cents, ending at $7.4125. October live cattle gained $1.45, closing at $125.27. November crude oil gained $0.87 per barrel, ending at $78.30. The Dow gained 338, closing at 34,755 while the NASDAQ gained 152 closing at 14,654.
