MILK
It was one of those days during which underlying cash did not make any large moves, leaving traders uncertain over which side of the market they should take. The result was more negative to Class III futures even though butter price declined further than barrel cheese. Class IV futures held steady in nearly all contracts.
It does not seem as if traders have the desire to pick any market direction and are looking to just scalp the market to take small profits if they materialize. Fundamentals have not changed much over the past few weeks leaving the market choppy in nearby months.
The bright spot is that contracts in 2024 have been slowly trending higher. There is anticipation that the milk supply might tighten eventually and prices may be higher over time. The October contracts are mostly priced with limited price movement from here through the end of the contracts on Oct. 31.
AVERAGE CLASS III PRICES
| 3 Month: | $17.23 |
| 6 Month: | $17.75 |
| 9 Month: | $18.05 |
| 12 Month: | $18.23 |
CHEESE
Buyers just have not turned aggressive in cheese as they are not concerned over supply. The growth of American cheese inventory in August showed demand did not utilize production which did not require the production to be supplemented with inventory. Given the current level of production and demand, prices may have limited upside potential.
BUTTER
So far, the price has retreated slowly with buying interest even at higher prices. Buying interest may slow as orders are filled and a sufficient supply is on hand for expected demand. Butter production is steady as cream is available. Strong demand is pulling down inventory.
OUTSIDE MARKETS SUMMARY
December corn closed down 3.25 cents per bushel at $4.9000, November soybeans closed up 6 cents at $12.8625 and December soybean meal closed up $.20 per ton at $390.20. December Chicago wheat closed down 2.50 cents at $5.7725. December live cattle closed down $0.20 at $186.55. November crude oil is down $0.63 per barrel at $87.06. The Dow Jones Industrial Average is up 314 points at 33,985 with the NASDAQ is up 161 points at 13,568.
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