MILK
Farms continue to exit the dairy business. Lower milk prices just are not providing the needed cash flow causing some to exit due to the financial situation with others closing due to the psychological impact of working hard and still losing money. Maybe many of the cows from those operations are heading to or have headed to slaughter which could tighten milk supply over time. There is hope milk prices will improve ye this year, but time is running out. If milk prices are not able to rally this month, lower prices may be with us into next year. USDA is extending the application deadline for the Milk Loss Program to Monday, Oct. 30, 2023, allowing more time for eligible dairy farmers to apply for much-needed, weather-related disaster recovery assistance. If you think you qualify for this assistance, make sure you take care of this.
AVERAGE CLASS III PRICES
| 3 Month: | $17.28 |
| 6 Month: | $17.81 |
| 9 Month: | $18.10 |
| 12 Month: | $18.27 |
CHEESE
For the week, block cheese price slipped 0.25 cent with two loads traded. Barrels increased 6.75 cents with three loads traded. Dry whey gained 3.75 cents with 70 loads traded. Demand for dry whey has increased substantially, but the price gain has been limited. However, price is trending higher and hopefully will continue to do so. Dry whey has a significant impact on the Class III price and if price trends higher, it will provide support under the market and better milk prices.
BUTTER
Butter price seems to have reached a peak and may head lower. However, it was encouraging to see some buyer interest supporting the market today resulting in a bounce from the low during spot trading. For the week, butter declined 14.25 cents with eight loads traded. Grade A nonfat dry milk price gained 4 cents with 14 loads traded.
OUTSIDE MARKETS SUMMARY
December corn closed down 2.75 cents per bushel at $4.9325, November soybeans closed down 9.75 cents at $12.8025 and December soybean meal closed down $2.90 per ton at $390.00. December Chicago wheat closed up 8.25 cents at $5.7975. December live cattle closed down $1.05 at $186.75. November crude oil is up $4.78 per barrel at $87.69. The Dow Jones Industrial Average is up 39 points at 33,670 with the NASDAQ down 167 points at 13,407.
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