MILK
Pressure continues on Class III milk with December and January contracts making new lows. Lower cheese prices leave much to be desired with sellers intent on moving supply rather than letting it build at the plant level. Milk receipts are sufficient to meet bottling and manufacturing demand. Milk production is slowly improving seasonally but it is not overwhelming the market.
Cooler weather has improved cow comfort with rations being balanced for maximum milk production. USDA will release the September Agricultural Prices report tomorrow which will provide the average prices used in calculating income over feed. The soybean meal price is released by the FSA and generally is not released until the following morning.
There will be a significant dairy margin coverage payment again for those who have not met the 5-million-pound production level.
AVERAGE CLASS III PRICES
| 3 Month: | $17.11 |
| 6 Month: | $17.47 |
| 9 Month: | $17.78 |
| 12 Month: | $18.01 |
CHEESE
Cheese prices have not found support as buyers remain unaggressive and continue to purchase on price weakness. It is a buyers' market as sellers continue to lower offers to meet the bids. Trading activity during spot trading Monday did not show any bids for much of the trading period. Buyers waited for prices to be lowered to their price level and then the loads were purchased. The bounce from the lows does not necessarily indicate support has been found.
BUTTER
The strength of butter price today is likely just a correction in a weakening market. However, the aggressiveness of buyers does indicate the price may not see consistent weakness and buying interest might remain stronger with lower prices increasing buyer interest.
OUTSIDE MARKETS SUMMARY
December corn closed down 2.50 cents per bushel at $4.7825, January soybeans closed down 12.25 cents at $13.0725 and December soybean meal closed down $15.90 per ton at $426.50. December Chicago wheat closed down 9.50 cents at $5.6600. December live cattle closed up $1.03 at $183.25. December crude oil is down $2.99 per barrel at $82.55. The Dow Jones Industrial Average is up 511 points at 32,929 with the NASDAQ up 146 points at 12,789.
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