MILK
Prices may have reached a bottom, but there will be significant volatility going forward. Class III futures seemed to play some catch-up as traders had been holding back waiting for the market to prove that the trend may have changed. Buyers became more aggressive as they saw underlying cash prices holding. The time of year is right for price strength as milk is moving from manufacturing to bottling for school accounts and buyers are looking ahead to Fall and holiday demand. Class IV futures outpaced Class III futures today even though butter price declined. The fact that butter remains in a range might be the supportive factor under the market. The Global Dairy Trade Auction trade weighted average declined 2.9% on today's event. There were 162 bidders with 30,326 metric tons sold. Anhydrous milk fat price declined 9.8% to $4,990 per metric ton or $2.26 per pound. Butter increased 0.2% to $5,240 per metric ton or $2.38 per pound. Cheddar cheese increased 4.2% to $5.005 per metric ton or $2.27 per pound. Skim milk powder gained 0.1% to $3,524 per metric ton or $1.60 per pound. Whole milk powder declined 3.5% to $3,417 per metric ton or $1.55per pound. Buttermilk powder, lactose and sweet whey powder were not offed at this event. This is the lowest the GDT index has been since January 19, 2021.
AVERAGE CLASS III PRICES
| 3 Month: | $20.67 |
| 6 Month: | $20.95 |
| 9 Month: | $20.71 |
| 12 Month: | $20.51 |
CHEESE
There was no interest in buyers are sellers doing any business today. They may be comfortable at the current level and may only buy and sell as they need to. With more milk beginning to move to the Southeast from the Central Region, less milk will be available to manufacturers. That will tighten supply but should not create any deficit of milk supply for manufacturing. U.S cheese price being significantly below world price should keep exports strong.
BUTTER
Buyers and sellers were active in the spot market today moving price up and down. This indicates a steady market with solid support. However, an upper price threshold seems to have been established at the $3.00 level as that is where buying interest dried up.
OUTSIDE MARKETS SUMMARY
September corn declined 15.75 cents ending at $6.11. September soybeans fell 39.75 cents closing at $14.5425 with September soybean meal down $16.30 closing at $425.90 per ton. September wheat declined 14.75 cents ending at $7.86. August live cattle gained $1.55 closing at $141.30. September crude oil fell $2.88 ending at $86.53 per barrel. The DOW gained 2450 points closing at 34,152 while the NASDAQ declined 26 points closing at 13,103.
