MILK
November and December Class III contracts remained under pressure Thursday, suffering double-digit losses due to the continued decline of cheese prices. This resulted in the November contract closing below $18 for the first time since Sept. 27. There is nearly another week of pricing under its belt with next week mostly finalizing the price traders will be anticipating for the month. Time is running out for the market to regain what was lost for the November contract. Class IV futures have been doing well with all contracts through the end of the year running above Class III contracts. At the current pace, the November Class IV price will be above the Class III price for the first time in a long time. Spot milk in the Central region of the country is running flat to as much as $1 over class. This does not price it out of reach for those who need to purchase extra milk. Cheese plants continue to receive abundant milk supply, keeping production busy. Increasing orders are being filled without difficulty with certain varieties in greater demand. Previously, there had been the indication that curd manufactures were having difficulty keeping up with orders, but that does not seem to be a concern this week.
AVERAGE CLASS III PRICES
| 3 Month: | $17.93 |
| 6 Month: | $18.18 |
| 9 Month: | $18.28 |
| 12 Month: | $18.33 |
CHEESE
Production of American cheese totaled 454 million pounds for the month of September. This was an increase of 5.1% from September 2020. Italian-type cheese production totaled 486 million pounds. This was 3.5% above a year ago. Total cheese output reached 1.14 billion pounds, up 3.3% from September 2020. This is a big reason why inventory did not decline during the month even though demand was increasing. Dry whey output in September totaled 75.7 million pounds, down 1.6% from a year ago.
BUTTER
Butter production in September totaled 143 million pounds, down 4.9% below a year ago. This explains why butter inventory is declining. Nonfat dry milk production declined 3.1%, totaling 122 million pounds. Skim milk powder output fell 22.5%, totaling 62.8 million pounds.
OUTSIDE MARKETS SUMMARY
December corn declined 4.75 cents, ending at $5.5925. November soybeans fell 22.25 cents, closing at $12.0925, with December soybean meal down $5 per ton, closing at $335.80. December wheat declined 7.25 cents, ending at $7.7375. December live cattle declined $1.02, closing at $130.62. December crude oil fell $2.05, closing at $78.81 per barrel. The Dow declined 33 points, closing at 36,124, while the NASDAQ gained 129 points, closing at 15,940.
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