MILK
Underlying cash did not provide much direction to traders today which left milk futures generally unchanged to lower. There were a few contracts with minor strength. Cash market activity has slowed significantly as buyers and sellers have not been very aggressive. This may be the pattern we will see through the end of the year. The November Federal Order prices were announced today showing a decrease in all classes. The Class II price was $24.67, a decrease of $1.06 from the previous month. Class III was $21.01, a decrease of $0.80 from October. The Class IV price was $23.30, a decrease of $1.66 from October. USDA released the Agricultural Prices report for October. The average corn price for the month was $6.50 per bushel, a decline of $0.59 from the previous month. Soybean price averaged $13.50, down $0.60 from September. Alfalfa hay price averaged $281 per ton, up $4.00 from the previous month. Premium/supreme hay averaged $348 per ton, an increase of $6.00 from September. The All-milk price was $25.90, up $1.50 per cwt from September. FSA has not yet updated the average soybean meal price. That leaves us without the ability to calculate the income over feed price for the Dairy Margin Coverage program. Soybeans and alfalfa hay are not used in the calculation. I just included those to see the price change from September.
AVERAGE CLASS III PRICES
| 3 Month: | $19.56 |
| 6 Month: | $19.68 |
| 9 Month: | $19.83 |
| 12 Month: | $19.92 |
CHEESE
Cheese plants report a slowdown in demand over the past week. This is usual at this time of year as many of the orders have been filled or product is in place and ready to be shipped. Spot milk is not as discounted as it was last week, but it is still running below class. With the recent price weakness, buyers have generally stepped back waiting to see where prices will go and how demand was shaping up through the end of the year.
BUTTER
Churning has been active with sufficient cream available for production. Many plants are running at or near capacity as they are churning for demand and to rebuild inventory. Some plants are being offered more cream than they can handle at the present time. Demand remains strong even though many of the holiday orders have been filled.
OUTSIDE MARKETS SUMMARY
December corn declined 3.75 cents closing at $6.62. January soybeans gained 10 cents closing at $14.6950 with December soybean meal up $9.20 per ton closing at $417.70. December wheat gained 13.765 cents closing at $7.7150. December live cattle increased $0.40 closing at $153.07. January crude oil gained $2.35 ending at $80.55 per barrel. The Dow jumped 737 points closing at 34,590 while the Nasdaq jumped 484 points closing at 11,468.
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