MILK:
Class III milk futures were 45 cents to 75 cents higher at the end of the day, with the help of increased spot cheese prices. Class IV futures saw slighter upticks, closing 2 to 5 cents higher. Milk supply is tight due to stronger Class I pulls and lower seasonal milk production. Hurricane Ida made a huge impact on production in Florida as plants closed early in preparation. Even delivering bottled milk was put on hold. Stock in milk products was depleted at grocery stores as well.
AVERAGE CLASS III PRICES:
| 3 Month: | $21.52 |
| 6 Month: | $21.04 |
| 9 Month: | $20.82 |
| 12 Month: | $20.73 |
CHEESE:
Spot block and barrels closed today with positive price changes. Blocks moved up 3.25 cents to the $2 mark, while barrels were only up a penny to $2.2100. Dry whey remained at $0.4400. There wasn't much trading activity. Cheese demand is declining in retail and food service sectors due to higher prices. Consumers are tending to change their desired brands or switch to different alternatives. International demand is strong. Cheese loads are available for spot purchasing.
BUTTER:
Spot butter jumped 3.25 cents, closing at $3.1775 with 11 loads traded. Tighter inventory is contributing to the higher market prices. There is a strong pull for cream to be used into more cream cheese and eggnog production, and butter makers are opting to sell over churning. The latest Cold Storage report noted that inventory was down 10% from the previous month. Grade A nonfat dry milk declined 2.75 cents, closing at $1.5425 with one load traded.
OUTSIDE MARKETS SUMMARY:
December corn gained 3.25 cents closing at $6.8075 per bushel. November soybeans increased 9.25 cents to settle at $13.7400 per bushel, with October soybean meal up $2.40 ending at $405.60 per ton. December wheat fell 9.50 cents closing at $9.1200 per bushel. October live cattle was up $1.05 ending at $144.325. November crude oil increased $3.85 closing at $83.34 per barrel. The DOW rose 765 points closing at 29,490 while the NASDAQ increased 239 points closing at 10,815 points.
