MILK
Class III milk remained under pressure in nearby contracts as cheese prices declined again. Both October and November contracts closed below $17. There is just too much milk around. The milk is moving to bottling for school accounts and manufacturing, allowing for product production. The interesting aspect is that spot milk continues to command a premium above class as there is a limited volume of extra milk available.
South Dairy Trade showed mostly lower prices than the previous period. Dairy products moving through ports in Argentina had 6,059.68 tons moving to 18 destinations at an average price of $3,971.04 per ton. Whole milk powder price declined 1.3% from the previous report at a price of $3,729.33 per ton or $1.69 per pound. Skim milk powder declined 1.6 % to $3,424.29 per ton or $1.55 per pound. Semi-hard cheese price declined 5.2% to $4,532.31 per ton or $2.06 per pound. Hard cheese declined 3.4% to $6,377.42 per ton or $2.89 per pound. Butter declined 3.9% to $4,685.60 per ton or $2.13 per pound.
Dairy products moving through ports in Uruguay Sept. 1-15 totaled 7,753.53 tons to 27 destinations at an average price of $3,454.67 per ton. Whole milk powder price declined 8.1% to $3,243.70 per ton or $1.47 per pound. Skim milk powder declined 7.9% to $3,014.33 per metric ton to 41.37 per pound. Semi-hard cheese gained 0.6% to $4,809.14 per ton or $2.18 per pound. Hard cheese gained 1.1% to $6,517.90 per ton or $2.96 per pound. Butter price declined 0.9% to $4,868.99 per ton or $2.21 per pound.
AVERAGE CLASS III PRICES
| 3 Month: | $17.38 |
| 6 Month: | $17.61 |
| 9 Month: | $17.86 |
| 12 Month: | $18.03 |
CHEESE
Buyers have stepped back from the market as weakness is evident. This is causing further weakness as sellers continue to offer product at lower prices to move it. As long as there is weakness, support is unable to surface. Once selling subsides, orders might come flooding in as buyers take advantage of lower prices. Demand is termed as steady with spot milk priced above class.
BUTTER
Butter moved to a record high Wednesday at the highest it has been in nearly a year. Demand has been steady, but the high price may have a negative market impact. Exports have been struggling all year and this is not going to help international interest in U.S. butter. The large decline in inventory in August and a tight cream supply are having an impact. There is no concern over the supply of butter as there was at this time last year but record high price has become a reality.
OUTSIDE MARKETS SUMMARY
December corn closed up 3.50 cents per bushel at $4.8325, November soybeans closed up .50 cent at $13.0325 and December soybean meal closed down $3.60 per ton at $389.10. December Chicago wheat closed down 9.50 cents at $5.7950. December live cattle closed down $0.30 at $188.18. November crude oil is up $3.29 per barrel at $93.68. The Dow Jones Industrial Average is down 69 points at 33,550 with the NASDAQ up 29 points at 13,093.
