MILK
Milk futures were able to find a little support today from a stronger block cheese price and a higher butter price. However, traders were not exuberant in their trading likely trimming their short positions if there was a profit to be had. Both January and February Class III contacts moved near $19.00 again but rebounded as the day progressed. South Dairy Trade volume and prices were released today Dairy products moved through port in Argentina totaled 9,793.22 tons at an average of $4,053.97 per ton to 27 destinations during the period of October 16 thru October 31. Whole milk powder price declined 1.7% from the previous release at $3,824.04 per ton or $1.74 per pound. Skim milk powder declined 6.6% to $3,428.80 per tone or $1.61 per pound. Semi-hard cheese declined 0.1% to $4,671.82 per ton or $2.12 per pound. Hard cheese increased 4.8% to $6,589.86 per ton or $2.99 per pound. Butter decreased 3.2% to $4,792.77 per ton or $2.18 per pound from the previous period. Uruguay had 10,623.4 tons moving at an average price of$3,951.20 per ton to 25 destinations. Whole milk powder decreased $3,755.71 per ton or $1.17 per pound. Skim milk powder decreased 2.5% to $3,722.68 per ton or $1.69 per pound. Semi-hard cheese increased 1.2% to $4,978.40 per ton or $2.26 per pound. Hard cheese increased 9.9% to $6,720.48 per ton or $3.05 per pound. Butter increased 1.6% to $5,395.47 per ton or $2.45 per pound. Buttermilk decreased 3.1% from the previous period to $4,45.77 or $1.84 per pound.
AVERAGE CLASS III PRICES
| 3 Month: | $19.65 |
| 6 Month: | $19.65 |
| 9 Month: | $19.81 |
| 12 Month: | $19.97 |
CHEESE
Spot cheese prices will remain choppy for a period as some last-minute holiday orders are being met and buyers look to purchase from the spot market if they cannot find it through other channels. Prices are not expected to trend higher anytime soon. Cheese production is increasing which most likely will begin to build inventory. Inventory is already high and further increases could pressure prices.
BUTTER
Buyers and sellers are running from one side of the ship to the other on a daily basis. Butter futures are holding their discount to underlying cash in anticipation of lower prices. February through May contracts are very similar in price showing a flat market during that period at $2.42 or slightly higher for the period. This would make an unusually flat market.
OUTSIDE MARKETS SUMMARY
December corn gained 2.50 cents closing at $6.4375. January soybeans gained 19.25 cents closing at $14.7975 with December soybean meal up $1.70 closing at $450.00 per ton. December wheat declined 4.25 cents ending at $7.2875. December live cattle gained $0.50 closing at $154.90. January crude oil gained $2.02 closing at $75.39 per barrel. The Dow gained 104 points closing at 34,109 while the Nasdaq gained 103 points closing at 11,257.
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