MILK
It has been a strong week for milk futures improving the outlook for milk prices over what futures had indicated about two weeks ago. Class III futures through November 2023 are solidly above $20.00 with December at the mid $21.00 level. Class IV futures posted double-digit gains in all contracts through the next year. Underlying cash prices increase significantly except for dry whey. Demand for milk is steady across much of the nation with milk production holding steady this week. There seems to be a good balance between supply and demand. Spot milk prices in the Midwest have been holding about steady ranging from $1.00 under to $0.50 over class. This may change through the Thanksgiving holiday period, but it will only be short-lived as schools will be back in session and milk will move back to bottling.
AVERAGE CLASS III PRICES
| 3 Month: | $21.12 |
| 6 Month: | $20.76 |
| 9 Month: | $20.62 |
| 12 Month: | $20.59 |
CHEESE
It was a good week for cheese prices. Blocks increased 19 cents with 5 loads traded. Barrels increased 8.75 cents with 12 loads traded. Dry whey declined 2.75 cents with 7 loads traded. Blocks have increased 24 cents since the beginning of the month. The rise of price is nearly a mirror to the rise of price in late August. Buyers are not buying for recutting and packaging for holiday gift boxes and other holiday items as most of that has been completed but are buying now to fill orders that have been coming in from the retail and food service industry over and above their usual volumes. It has been impressive to see the recent gains.
BUTTER
For the week, butter price increased 13.25 cents with 13 loads traded. Grade A nonfat dry milk price increased 3 cents with 11 loads traded. Butter production is increasing as more cream is available. It will take an extended period to increase inventory to a level at which the industry will feel more comfortable. Butter price may settle down around this area for a time as holiday demand is met and supply is assessed through the rest of the year.
OUTSIDE MARKETS SUMMARY
December corn gained 4.75 cents closing at $6.58. November soybeans gained 25 cents closing at $14.5550 with December soybean meal up $3.30 per ton closing at $407.40. December wheat gained 10.25 cents closing at $8.1375. December live cattle fell $1.55 ending at $151.52. December crude oil gained $2.49 closing at $88.96 per barrel. The Dow gained 32 points closing at 33,748 while the Nasdaq gained 209 points ending at 11,323.
