MILK
Milk futures were on a roller coaster with strong gains prior to spot trading coming under pressure during spot trading only to regain much of what futures traded at prior to spot trading. Traders reacted to the weakness of cheese but then adjusted to the strength of last week. Today, USDA released the Milk Production report which showed milk production 0.6% below a year ago in the top 24 states at 18.3 billion pounds. This is the largest decrease in year-over-year milk production since April 2022. Milk production per cow was 2,047 pounds, a decline of 13 pounds from July 2022. Milk cow numbers totaled 8.92 million, down 7,000 head from June but unchanged from July 2022. Milk production in the 50 states totaled 19.1 billion pounds, down 0.5% from a year ago and the largest decline in milk production since May 2022. Production per cow totaled 2,029 pounds, down 9 pounds from July 2022. Cow numbers declined 3,000 head from June bringing total cow numbers to 9.40 million head, down 13,000 head from a year ago. New Mexico showed the largest percentage of milk decline with a loss of 9.1%followed by number one producing state of California with a decline of 5.5%. The number two milk-producing state of Wisconsin showed an increase of 0.9%. The largest increase took place in South Dakota with a gain of 7.5%.
AVERAGE CLASS III PRICES
| 3 Month: | $18.12 |
| 6 Month: | $18.18 |
| 9 Month: | $18.21 |
| 12 Month: | $18.26 |
CHEESE
The decrease in cheese prices was not unexpected as the market will not continue to move steadily higher indefinitely. Unfilled bids of Friday for barrels were nowhere to be found today as only offers were posted. Business continues to be done in the country with excess coming to the spot market or the need to purchase bringing buyers to the daily spot market. It is not the only outlet for sellers or the only place to purchase cheese.
BUTTER
The decline of butter on Friday was viewed as a buying opportunity today. The downside price risk may be limited as well as upside price potential may be limited. Buyers are being a bit more aggressive as they look ahead to later demand.
OUTSIDE MARKETS SUMMARY
December corn closed down 10.50 cents per bushel at $4.8250, November soybeans closed up 8.50 cents at $13.6175 and December soybean meal closed up $7.50 per ton at $396.50. December Chicago wheat closed down 13.50 cents at $6.2550. October live cattle closed up $1.05 at $179.88. October crude oil is down $0.54 per barrel at $80.12. The Dow Jones Industrial Average is down 37 points at 34,464 with the NASDAQ up 207 points at 13,498.
