MILK
Class III milk futures were under pressure with double-digit losses on September through December contracts. This followed the pattern we have seen recently with steady cash prices meaning weaker futures prices. It will take higher prices to trigger buying interest again. Traders are cautious as they do not feel underlying cash prices will be able to continue much higher. Slow export demand means domestic demand will need to improve our supply will need to tighten sufficiently to cause buyers to be more aggressive. Milk production is slowing but the question is whether it will slow enough to reduce milk supply to bottling and manufacturing thereby tightening availability. Dairy Farmers of America (DFA) took over as the top Dairy Coop in the country based on 2022 or the company's fiscal year revenues. They had a very successful year with revenues up 27 percent year over year totaling $24.5 billion. Land O'Lakes placed second with Saputo placing third.
AVERAGE CLASS III PRICES
| 3 Month: | $17.72 |
| 6 Month: | $17.94 |
| 9 Month: | $18.03 |
| 12 Month: | $18.10 |
CHEESE
Cheese is being purchased out in the country without having to come to the spot market. Sellers can move product through regular channels. This leaves little activity on the daily spot market. Buyers are not concerned about supply, leaving them purchasing as they need it and then a bit extra to slowly increase supply for later demand. Emotion is not part of the market at the present time.
BUTTER
Butter price seemingly has nowhere to go as supply is in balance with demand. This may continue for a while unless churning slows more and demand increases. Buyers have already purchased some for later demand leaving them less aggressive and certainly not concerned over supply like they were last year.
OUTSIDE MARKETS SUMMARY
December corn closed up 0.50 cent per bushel at $4.8775, November soybeans closed up 18.50 cents at $13.2600 and December soybean meal closed up $3.30 per ton at $392.00. September Chicago wheat closed down 10.75 cents at $6.1600. October live cattle closed down $0.65 at $180.68. September crude oil is down $0.68 per barrel at $82.51. The Dow Jones Industrial Average is up 26 points at 35,308 with the NASDAQ is up 143 points at 13,788.
