MILK:
Milk futures closed mixed with Class III contracts showing gains through January and lower prices thereafter. Class IV futures were mixed across the board. Trading activity was rather light and confined to the October and November Class III contracts. Traders are uncertain of what the market will do this week. Milk production is beginning to improve seasonally but certainly not by leaps and bounds. South Dairy Trade numbers and prices were released today. There were 12,810.23 tons of dairy products moved through the ports of Uruguay during the period from September 1st through September 15 going to 27 destinations. The average price per ton was $4,298.00 or $1.95 per pound. Whole milk powder declined 2.9% from the previous report to $4,123.49 per ton or $1.87 per pound. Skim milk powder gained 3.7% to $4,242.41 per ton or $1.93 per pound. Semi-hard cheese declined 2.2% to $4,884.61 per ton or $2.22 per pound. Hard cheese jumped 11.9% from the previous report to $6,093.79 per ton or $2.77 per pound. Butter declined 1.7% to $5,584.00 per ton or $2.54 per pound with buttermilk down 5.3% to $4,355.78 per ton or $1.98 per pound. For the period of August 1 through August 15, ports in Argentina moved 9,040.08 tons of dairy products to 21 destinations at an average price of $4,476.73 per ton or $2.03 per pound. Whole milk powder increased 1.1% to $4,264.34 per ton or $1.94 per pound. Skim milk powder declined 2.8% to $3,910.09 per ton or $1.78 per pound. Semi-hard cheese declined $4,808.41 or $2.18 per pound. Hard cheese gained 6.6% to $6,626.31 per ton or $3.00 per pound. Butter increased 0.6% to $5,250.70 per ton or $2.38 per pound.
AVERAGE CLASS III PRICES:
| 3 Month: | $20.56 |
| 6 Month: | $20.39 |
| 9 Month: | $20.32 |
| 12 Month: | $20.31 |
CHEESE:
Buyers and sellers of cheese are not excited about doing business on expectations but rather on reality. Buyers need to feel confident demand is going to hold up through the holidays and are purchasing as orders surface. Sellers are moving supply as they have it rather than speculate on higher prices through the end of the year. This keeps the market choppy and traders scratching their heads. Price fluctuations will be the norm for a period of time.
BUTTER:
Price is expected to remain range bound for much the same reason as cheese, but at s much higher price level. The heavy trading activity in cash today indicates good demand as the fall progresses. A price much higher than the current level risks a slowing of demand. The high has likely been established for the rest of the year.
OUTSIDE MARKETS SUMMARY:
December corn gained 1.25 cents closing at $6.6750. November soybeans declined 3.25 cents closing at $14.08 with October soybean meal down $6.50 per ton closing at $426.10. December wheat gained 13.50 cents ending at $8.7150. October live cattle gained $0.10 closing at $143.57. November crude oil gained $1.79 per barrel ending at $78.50. The DOW declined 126 points ending at 29,135 while the NASDAQ gained 27 points closing at 10,830.
