MILK
Class III milk futures moved higher quickly as spot cheese increased. Choppy markets were anticipated, and this shows what this month may see repeatedly. December and January Class III futures moved back above $20.00 again. It is uncertain whether this will hold, or once buyers again have orders filled, prices will slip back again. Manufacturing plants are receiving sufficient milk to keep plants operating at or near capacity. Many are not looking for extra milk leaving limited demand for spot milk. The average soybean meal price for the month of October was released this morning at $468.68 and was a decrease of $5.26 per ton from September. This puts the income over feed for the month at $10.71. Thus, there will be no payment under the Dairy Revenue Protection program as it is well above the $9.50 level. This is the highest income over feed price since June.
AVERAGE CLASS III PRICES
| 3 Month: | $20.04 |
| 6 Month: | $20.02 |
| 9 Month: | $20.07 |
| 12 Month: | $20.10 |
CHEESE
Western cheese producers report demand is steady with food service demand slightly higher. Barrel cheese inventory has increased but that did not have any impact on the market today. Barrels increased 8 cents as buyers became aggressive. Two unfilled bids at the close of spot trading would suggest buyers will be back in tomorrow. Many plants have sufficient milk from regular suppliers leaving them less aggressive in the spot market.
BUTTER
Churns are having no difficulty sourcing sufficient cream to keep plants full. Production has been increasing with the intent of supplying current demand as well as building inventory. Overall, the market is termed as stable with buyers and sellers comfortable doing business at the current level.
OUTSIDE MARKETS SUMMARY
December corn fell 12 cents closing at $6.50. January soybeans fell 39.75 cents closing at $14.1975 with December soybean meal gaining $3.20 per ton closing at $420.90. December wheat declined 12.75 cents closing at $7.5875. December live cattle slipped $0.02 closing at $153.05. January crude oil gained $0.67 ending at $81.22 per barrel. The Dow declined 195 points closing at 34,395 while the Nasdaq gained 14 points closing at 11,482.
