MILK:
Milk futures were under pressure with Class IV futures showing greater losses than Class III. Stronger cheese and dry whey should have supported Class III futures, but it seemed traders were more focused on the impact of another month of a strong consumer price index and what it might do for demand. After holiday purchasing is complete it will be up to ongoing demand to support prices and that is now in question. This kept Class III futures from responding to higher cheese prices. South Dairy Trade numbers were released showing the average price and volume of dairy products moving through ports in Argentina and Uruguay. During the period of August 16 through August 31, there were 9,278.74 tons moved to 20 destinations at an average price of $4,407.93 per ton through Argentina. Whole milk powder price declined 2.5% for the previous period to $4,156.39 per ton or $1.89 per pound. Skim milk powder increased 3.4% to $4,043.73 per ton or $1.84 per pound. Semi-hard cheese increased 1.2% to $4,867.68 per ton or $2.21 per pound. Hard cheese declined 5.7% to $6,245.34 per ton or $2.84 per pound. Butter declined 1.6% to $5,165.08 per ton or $2.35 per pound. Buttermilk was steady with the previous period at $3,124.23 per ton or $1.42 per pound. Uruguay moved 10,992.43 tons of dairy products to 22 destinations at an average price of $4,283.98 per ton. Whole milk powder increased 2.1% to $4,210.78 per ton or $1.91 per pound. Skim milk powder fell 7.8% to $3,910.98 per ton or $1.78. Semi-hard cheese slipped 0.1% to $4,981.73 per ton or $2.26 per pound. Hard cheese increased 1.5% to $6,182.78 per ton or $2.81 per pound. Butter increased 2.6% to $5,727.95 per ton or $2.60 per pound. Buttermilk powder jumped 11.2% to $4,844.92 per ton or $2.20 per pound.
AVERAGE CLASS III PRICES:
| 3 Month: | $21.16 |
| 6 Month: | $20.71 |
| 9 Month: | $20.61 |
| 12 Month: | $20.54 |
CHEESE:
There are some reports of food service demand holding well while retail demand is weakening. Higher price for groceries has caused consumers to shift purchases from their usual. Some of this is due to packagers making smaller packages while keeping prices at larger package levels rather than increase prices on previous package sizes. Those higher prices are not being passed on down to the farm but are being absorbed in between.
BUTTER:
Even though butter price is high, there are some plants selling cream rather than churning it. Some of that is due to a period of downtime for maintenance with some possibly due to a fear of slowing demand which could mean lower prices. Nevertheless, inventory is much less than last year, and price should remain supported for an extended period of time.
OUTSIDE MARKETS SUMMARY:
December corn gained 4.75 cents ending at $6.9775. November soybeans slipped 0.25 cents closing at $13.9575 with October soybean meal down $3.30 per ton closing at $418.50. December wheat gained 10 cents closing at $8.9225. October live cattle gained $0.27 closing at $146.45. November crude oil gained $1.84 ending at $89.11 per barrel. The DOW jumped 828 points closing at 30,039 while the NASDAQ gained 232 points closing at 10,649.
