MILK
Class III milk futures took another beating today with contracts as much as 46 cents lower. The October contract took the brunt of selling over the past two days with the price falling 97 cents. Class IV futures moved in the opposite direction of Class III futures following butter higher.
Class IV futures are significantly above Class III futures again supported by higher cash. USDA released the World Agricultural Supply and Demand report with its estimate of milk production this year at 227.5 billion pounds, down 400 million pounds from the August estimate. This is 1.0 billion pounds above 2022. Milk production for 2024 was reduced by 100 million pounds to an estimate of 230.4 billion pounds. Projected milk prices were increased from the August report. The average Class III price increased $0.45 to an average of $17.35 this year and increased $1 next year to an average of $17.55. Class IV milk price increased 10 cents this year to $18.60 and rose 20 cents the next year to an average of $18. The all-milk price was raised 45 cents to $20.40 while next year's projected price was raised 95 cents to $20.30. This is certainly an improvement providing some hope for better prices next year.
AVERAGE CLASS III PRICES
| 3 Month: | $18.19 |
| 6 Month: | $18.23 |
| 9 Month: | $18.28 |
| 12 Month: | $18.23 |
CHEESE
Buyers did not support cheese during spot trading, allowing the price to decline. Price may find a level of buyer interest again, but it is unclear at what level. That may depend on how aggressive sellers remain. USDA estimates the average cheese price this year at $2.54, an increase of 2.50 cents from its previous estimate. The average cheese price for next year was raised 12 cents to an average of $2.55 per pound. Dry whey price was raised 2 cents to 34.50 cents for this year and raised one cent to 31.50 cents next year.
BUTTER
Price took back most of yesterday's loss as buyers looked for supply at the lower price. This may bring more buyers into the spot market. USDA increased butter price this year to $2.54, up 4.50 cents from the previous estimate. The average price next year was raised to $2.55, up 13 cents from the August estimate. The nonfat dry milk price was reduced 1.50 cents this year to $1.16 and reduced next year 3.50 cents to $1.09 per pound.
OUTSIDE MARKETS SUMMARY
December corn closed down 9.25 cents per bushel at $4.7650, November soybeans closed down 22.50 cents at $13.4650 and December soybean meal closed down $6.80 per ton at $398.10. December Chicago wheat closed up 3 cents at $5.8750. October live cattle closed down $0.08 at $184.15. October crude oil is up $1.51 per barrel at $88.80. The Dow Jones Industrial Average is down 18 points at 34,646 with the NASDAQ down 144 points at 13,774.
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