MILK
There are reports that fluid milk supply is somewhat tight for this time of year. Some of this was due to the hot weather experienced during the summer. Milk production has rebounded but not back up to previous levels. However, milk supply is sufficient for demand leaving milk prices lower than desired. Cheese prices have been struggling as buyers have not felt the need to be aggressive with their purchases resulting in limited upside price movement. Time is running out for the usual fall price increases which could indicate lower prices may be with us for an extended period. September dairy cattle slaughter was substantially lower than August. There were 240,500 dairy cattle slaughtered for the month, a decline of 34,700 head from August and down 20,000 head from September 2022. This may indicate farms are again holding onto cows rather than continuing heavy culling.
AVERAGE CLASS III PRICES
| 3 Month: | $17.27 |
| 6 Month: | $17.66 |
| 9 Month: | $17.97 |
| 12 Month: | $18.14 |
CHEESE
Cheese availability is sufficient for demand. The inventory in September declined less than usual and remains slightly higher than a year ago. This keeps buyers unconcerned over supply even though the holidays are nearing. Plants indicate mixed demand depending on variety. Some cheese varieties are tight, but overall demand is termed as steady. Cheese futures contain a premium through the end of the year in anticipation of stronger prices, but strength will need to develop shortly or that premium will erode.
BUTTER
It certainly appears butter price has reached its peak and is now on the way down. No buyers showing up today during spot trading may mean further weakness as buyers have pulled back. Cream has become more available as milk components improve. Butter production will increase allowing for more to be available for demand.
OUTSIDE MARKETS SUMMARY
December corn closed down .75 cent per bushel at $4.7925, November soybeans closed down 8.75 cents at $12.7950 and December soybean meal closed up $.30 per ton at $429.50. December Chicago wheat closed up 11.00 cents at $5.7950. December live cattle closed down $0.10 at $179.33. December crude oil is down $2.18 per barrel at $83.21. The Dow Jones Industrial Average is down 252 points at 32,784 with the NASDAQ down 226 points at 12,596.
