MILK
Milk receipts are slowly improving as cow comfort improves and good-quality feed is being fed. However, increased culling is offsetting some of the gains of overall milk production. There is some thought that heavy culling will continue due the lack of feed in some areas that were hit hard by drought. Heavy culling will also be higher due to higher feed prices. This may slow if milk prices continue to climb and if the outlook for milk price improves. There has been indication from some areas that farms are looking to expand, but that seems to be the exception right now. Many potential expansions will be put on hold due to high construction material costs or the inability to obtain some of the required equipment to put into an expansion. This is an ongoing problem not only for dairy farms, but all farms in general and well as other industries.
AVERAGE CLASS III PRICES
| 3 Month: | $18.31 |
| 6 Month: | $18.10 |
| 9 Month: | $18.06 |
| 12 Month: | $18.07 |
CHEESE
Cheese is trying the continue the trend higher, but it does have some headwinds. Milk supply is readily available for cheese production, keeping plants supplied with sufficient quantities of milk. Cheese production continues to exceed last year with inventory above year-earlier levels. Buyers have become a little more aggressive in their desire to increase ownership for upcoming demand or to fill current orders from packagers and recutters. Much of the cheese for gift boxes has been purchased or will be purchased during the next few weeks.
BUTTER
Butter supply is readily available for demand. This leaves buyers unaggressive during spot trading. Cream supply is available, but some do not want to pay the higher price associated with cream available of the spot market. They are content to utilize regular supplies and have limited butter production accordingly. However, that has not been able to support price enough to resume the uptrend.
OUTSIDE MARKETS SUMMARY
December corn declined 5.25 cents, closing at $5.3225. November soybeans declined 8.50 cents, ending at $12.42, with October soybean meal up $1.40 per ton, closing at $321.60. December wheat gained 1.25 cents, ending at $7.46. October live cattle jumped $1, closing at $123.82. November crude oil fell $1.50, closing at $77.43 per barrel. The Dow gained 102 points, closing at 34,417, while the NASDAQ declined 65 points, closing at 14,502.
