MILK
Class IV futures posted large gains during the second half of the week, moving October and November futures above $20.00 to a level not seen since February. The strong gain of butter propelled contracts higher. Class III futures were under pressure the first four days of the week and finally saw a bounce today. Futures price increases today were limited as traders remained cautious. Gains were capped due to spot cheese prices slipping back from the highs. Closer Class IV contracts are around $3.00 above Class III futures. Milk production has rebounded from the depressed levels seen during the hot weather, but production has not moved back to previous levels. Some manufacturing plants would like to have access to more milk than they have through regular channels, but not much extra milk is available. Bottling demand is steady with a large amount moving to school accounts.
AVERAGE CLASS III PRICES
| 3 Month: | $17.64 |
| 6 Month: | $17.87 |
| 9 Month: | $18.03 |
| 12 Month: | $18.16 |
CHEESE
Cheese prices were under substantial pressure this week as buyers held back seeing that sellers wanted to move supply almost at whatever price they could get. Buyers purchased on the way down picking up supply at ever lower prices. The bounce today may indicate the slide is complete, but that is uncertain with just one day of an increase. For the week blocks fell 10 cents with three loads traded. Barrels fell 21 cents with 35 loads traded. dry whey increased 0.25 cent with 30 loads traded.
BUTTER
It was a banner week for butter with price moving to the highest level since October 28, 2022. Price gained 28.25 cents closing the week at $3.00 with 23 loads traded. Price is now 26.75 cents away from the record high achieved about a year ago. Grade A nonfat dry milk gained 5.75 cents for the week with 13 loads traded. USDA will release the August Cold Storage report on Monday. Butter stocks may be higher than a year ago but not by very much.
OUTSIDE MARKETS SUMMARY
December corn closed up 2.00 cents per bushel at $4.7725, November soybeans closed up 2.50 cents at $12.9625 and December soybean meal closed down $2.30 per ton at $385.80. December Chicago wheat closed up 3.75 cents at $5.7950. December live cattle closed up $1.85 at $191.35. November crude oil is up $0.40 per barrel at $90.03. The Dow Jones Industrial Average is down 107 points at 33,964 with the NASDAQ down 12 points at 13,212.
