MILK
Milk futures continue to retrace, eroding more of the gains that were realized last week. Traders have again turned bearish after a brief period of hope of higher prices.
It may be more difficult for prices to rally as time moves forward. Historically, milk prices will increase into September or October as there is greater buying interest for the upcoming holidays. Without that aggressive buying interest, there may be limited upside price potential.
South Dairy Trade numbers were released today for dairy products moving through ports in Argentina and Uruguay over a two-week period. During the period of Sept. 1-15, there were 11,357.51 tons moving to 28 destinations from Argentina.
Whole milk powder price declined 5.34 percent from the previous period to $3,421.69 per ton or $1.55 per pound. Skim milk powder declined 6.24% to $3,101.05 per ton or $1.41 per pound. Semi-hard cheese increased 0.72% to $4,492.72 or $2.04 per pound. Hard cheese declined 1.93% to $6,101.15 per ton or $2.77 per pound Butter declined 7.69% to $4,415.42 per ton or $2 per pound.
Dairy products moving through ports in Uruguay during the period of Oct. 1-15 totaled 8,074.86 tons moving to 26 destinations. Whole milk powder price increased 3.56% to $3,374.83 or $1.53 per pound. Semi-hard cheese increased by 3.70% to $4,894.72 per ton or $2.22 per pound. Hard cheese declined 7.03% to $5,974.44 or $2.71 per pound. Butter declined 2.2% to $4,642.84 per ton or $2.11 per pound.
AVERAGE CLASS III PRICES
| 3 Month: | $17.37 |
| 6 Month: | $17.66 |
| 9 Month: | $18.04 |
| 12 Month: | $18.22 |
CHEESE
Much of the gain in block cheese price has been nearly erased over the past few days. Barrels have held their gains which will hopefully provide some support to the block price. However, buyers see the weakness and continue to lower bids as sellers want to move the product.
BUTTER
Price slipped again today but buyers were ready to purchase with some business being done. It seems as if the market is developing a range for the time being as buyers prepare for the holiday season and regular orders need to be filled. The September Cold Storage report will be released Wednesday showing the decline in inventory seen for the month.
OUTSIDE MARKETS SUMMARY
December corn closed down 6.25 cents per bushel at $4.8400, November soybeans closed up 8.50 cents at $12.9525 and December soybean meal closed up $13.70 per ton at $434.20. December Chicago wheat closed down 6.75 cents at $5.8050. December live cattle closed up $0.28 at $178.63. December crude oil is down $1.75 per barrel at $83.74.
