MILK
Class III milk futures did not move as would have been expected given the fact that cheese prices increased significantly. That may have been due to the strength Monday being a bit overdone with futures now settling more in line with underlying cash. Strength may be seen in the overnight trade as futures may be in line with cash and the trend has turned higher. Class IV futures showed strength across the board as butter pushed to another record with no indication of a top. South Dairy Trade numbers were released Tuesday. There were 8,525.73 tons of dairy products moving through Argentinian ports to 24 destinations at an average price of $4,426.75 per ton during the second half of July. Whole milk powder price was 1.1% lower at $2,217.35 per ton or $1.92 per pound. Skim milk powder declined 0.6% to $4,021.15 per ton or $1.83 per pound. Semi-hard cheese increased 1.2% to $4,853.62 per ton or $2.20 per pound. Hard cheese declined 2.4% to $6,215.49 per ton or $2.82 per pound. Butter declined 4.9% to $5,219.11 per ton or $2.37 per pound. Dairy products moving through ports in Uruguay during the second half of August totaled 8,749.59 tons to 24 export destinations at an average price of $4,405.88 per ton. Whole milk powder increased 4.8% to $4,248.65 per ton or $1.93 per pound. Skim milk powder decreased 4.3% to $4,089.43 per ton or $1.86 per pound. Semi-hard cheese increased 6.0% to $5,099.31 or $2.32 per pound. Hard cheese decreased 8.2% to $5,445.20 per ton or $2.47 per pound. Butter decreased 1.1% to $5,680.22 per ton or $2.58 per pound. Buttermilk increased 1.4% to $4,599.19 per ton or $2.09 per pound.
AVERAGE CLASS III PRICES
| 3 Month: | $21.10 |
| 6 Month: | $21.28 |
| 9 Month: | $21.20 |
| 12 Month: | $21.12 |
CHEESE
Both blocks and barrels are at or above $2, where they have not been since July 14 and 15, respectively. This has been the most sustained strength we have seen in quite some time. Buyers have turned aggressive, but the upside might be limited if demand does not support the strength. If that were the case, there could be a price void developing under the market.
BUTTER
The surge of price Tuesday with unfilled bids remaining at the close of spot trading would suggest further upside is possible. Buyers are not flinching at record price as they bid for more ownership of product. Supply is tighter than a year ago and demand is good.
OUTSIDE MARKETS SUMMARY
September corn declined 3.25 cents, closing at $7.09. September soybeans declined 15.50 cents, ending at $15.3425, with September soybean meal down $10.80, closing at $462.10 per ton. September wheat gained 1.50 cents, closing at $8.42.75. October live cattle declined $0.95, closing at $144.80. October crude oil declined $0.47, closing at $87.31 per barrel. The Dow plummeted 1,276 points, closing at 31,105, while the NASDAQ fell 633 points, closing at 11,634.
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