MILK
Milk plants report their phones are quiet as offers for spot milk are virtually non-existent. Spot milk is available but is priced at a premium to class with some reporting up to $2 above. Milk receipts are slowly improving with component values showing signs of improvement as well. Milk output in September was about as expected with cow numbers also about as expected. The report yesterday was neutral to the market. Milk production may coast at the current level for a while as culling keeps cow numbers from increasing and production from rising too much.
Bottling demand is steady with demand from all other classes of milk termed steady as well. Class III milk futures in closer months fell today but still closed higher than a week ago. Hopefully, the decline will be temporary. Class IV futures held onto their gains this week, closing quite a bit above a week ago.
AVERAGE CLASS III PRICES
| 3 Month: | $17.70 |
| 6 Month: | $18.04 |
| 9 Month: | $18.26 |
| 12 Month: | $18.43 |
CHEESE
For the week, blocks increased 8.75 cents with 29 loads traded. Barrels gained 6.50 cents with 15 loads traded. Dry whey gained 6 cents with 30 loads traded.
Cheese trading activity increased as buyers became more aggressive looking ahead to upcoming demand. Demand has been relatively flat but some reports indicate an uptick in demand recently. Hopefully this will improve as time progresses. Cheese futures are in line with current expectations for cheese prices.
BUTTER
For the week, butter price remained steady with 13 loads traded. Grade A nonfat dry milk gained 1.75 cents with 18 loads traded. Butter is back where it started with business done at higher levels.
It will be interesting to see if price is building a sideways trading range at this level. Buyers continue to purchase at the high price. Butter futures anticipate a substantial drop in price over time with contracts trading near the $2.50 price level for much of next year.
OUTSIDE MARKETS SUMMARY
December corn closed down 9.50 cents per bushel at $4.9550, November soybeans closed down 13.25 cents at $13.0225 and December soybean meal closed up $.90 per ton at $423.90. December Chicago wheat closed down 8 cents at $5.8600. December live cattle closed down $0.68 at $184.63. December crude oil is down $0.12 per barrel at $88.25. The Dow Jones Industrial Average is down 287 points at 33,127 with the NASDAQ down 202 points at 12,984.
