MILK
Class III milk futures closed mixed Tuesday, while Class IV futures closed under pressure. Underlying cash did not provide much direction. Stronger barrel cheese price was somewhat offset by the weakness of dry whey and stability of blocks. December Class III futures tried to reach back to $19 but was 4 cents shy of reaching that level. Some support may be seen from the Global Dairy Trade auction Tuesday. Prices increased in all categories with the trade-weighted average increasing 2.2% from the previous event. There were 177 participants in the auction with 27,836 metric tons of product sold. Anhydrous milk fat increased 2.5% to $6,151 per metric ton or $2.79 per pound. Butter increased 4.7% to $5,111 per metric ton or $2.32 per pound. Cheddar cheese price increased 2.9% to $4,426 per metric ton or $2.01 per pound. Lactose gained 5.9% to $1,258 per metric ton or $0.57 per pound. Skim milk powder increased 2.5% to $3,401 per metric ton or $1.54 per pound. Whole milk powder increased 1.5% to $3,803 per metric ton or $1.73 per pound. Rennet casein was not offered at this event, which is very unusual. In fact, I do not ever remember that it has not been traded since the beginning. The September Milk Production report will be released Wednesday.
AVERAGE CLASS III PRICES
| 3 Month: | $18.70 |
| 6 Month: | $18.41 |
| 9 Month: | $18.32 |
| 12 Month: | $18.30 |
CHEESE
Cheese prices seem to be supported but continue to have a difficult time breaking above the range and possibly trend higher. Sellers seem to be willing to be more aggressive at higher prices as they want to move product rather than put it in storage. Cheese supply is readily available with buyers purchasing as needed to fill orders as well as keep a supply on hand. This keeps the market range bound.
BUTTER
Butter price dipped back again for the second day. Sellers are taking advantage of higher prices to move some product. Trading activity has been brisk and demand good as buyers want to purchase, but only at lower prices. It has been a volatile month with price ranging from $1.69 to $1.8275.
OUTSIDE MARKETS SUMMARY
December corn declined 2.50 cents, closing at $5.3025. November soybeans gained 6.50 cents, closing at $12.28, with December soybean meal up $4.70 per ton, closing at $322.60. December wheat slipped 0.25 cent, closing at $7.36. October live cattle declined $0.45, ending at $125. November crude oil gained $0.52 ending at $82.96 per barrel. The Dow closed up 199 points at 35,457, while the NASDAQ gained 107 points, closing at 15,129.
