MILK
Milk futures were under pressure again today due to the weakness of cash. Class IV contracts fell more than Class III. However, Class III futures have now eliminated the gains of last week and are again near the lows. USDA released the September Cold Storage report which showed declines in inventory in all categories. This is seasonal but the declines of inventory are lighter than usual for this time of year. This report will not have much immediate influence on the market but may have a longer-term impact depending on the level of inventory by the end of the year. Eligible dairy farmers have until Monday, Oct. 30, 2023, to apply for assistance through the Milk Loss Program (MLP). MLP compensates dairy producers who, because of qualifying weather events, dumped or removed milk without compensation from the commercial milk market in calendar years 2020, 2021 and 2022. Eligible causes of loss also include consequences of these weather events, such as power outages, impassable roads, and infrastructure losses. If you think you qualify for this program, please contact your local FSA office.
AVERAGE CLASS III PRICES
| 3 Month: | $17.27 |
| 6 Month: | $17.66 |
| 9 Month: | $17.97 |
| 12 Month: | $18.14 |
CHEESE
Cheese inventory declined seasonally but the decline was light for this time of year. American cheese inventory declined 2.3 million pounds in September to an inventory of 850.5 million pounds. This is one percent above a year ago. Swiss cheese inventory declined 216,000 pounds totaling 22.4 million pounds which is 3 percent below a year ago. Other cheese inventory declined 20.5 million pounds totaling 599.4 million pounds or one percent below a year ago. Total cheese inventory declined 23.1 million pounds in August to 1.472 billion pounds, which was near the same level as it was a year ago.
BUTTER
Butter inventory totaled 275.4 million pounds, down 16.3 million pounds from August. However, inventory for September is 3 percent above a year ago. Production is improving and is offsetting some on the movement of butter resulting in inventory decreasing less than usual. This pattern may mean inventory might be near a year ago or even higher at the end of the year. Butter price is likely to trend lower.
OUTSIDE MARKETS SUMMARY
December corn closed down 4.00 cents per bushel at $4.8000, November soybeans closed down 7.00 cents at $12.8825 and December soybean meal closed down $5.00 per ton at $429.20. December Chicago wheat closed down 12.00 cents at $5.6850. December live cattle closed up $0.80 at $179.43. December crude oil is up $1.65 per barrel at $85.39. The Dow Jones Industrial Average is down 105 points at 33,036 and NASDAQ is down 319 points at 12,821.
