MILK
Class III milk futures closed lower for the week as price continued to erode. Underlying cheese prices have been unable to find support. Blocks are down to the lowest level since July 18. Milk production is sufficient for demand with no concern from buyers over the availability of supply. Cheese plants want to move product as quickly as possible rather than paying for storage and interest on inventory with little hope of recouping the expense. We are now a third of the way through November with hopes for any significant increase in prices running out of time before the holidays.
Class IV futures declined for the week but held up rather well considering the large decline in butter price. Dairy exports continue to struggle in September with milk solids equivalent exports down 12% from a year earlier. This was the eighth consecutive month of decline. The value of dairy exports in September was down 25%, totaling $603 million and the lowest since January 2022.
AVERAGE CLASS III PRICES
| 3 Month: | $17 |
| 6 Month: | $17.42 |
| 9 Month: | $17.71 |
| 12 Month: | $17.93 |
CHEESE
For the week, block cheese declined 6.50 cents with 15 loads traded. Barrels gained a penny with 20 loads traded. Dry whey gained a penny with 12 loads traded. Cheese exports in September finally showed an increase over a year earlier with a gain of 4.3%, totaling 36,883 metric tons. Year-to-date exports are up 4.6% over the same period last year. Whey exports struggled posting a loss of 24.7% from September 2022, totaling 40,282 metric tons. The bright spot was whey protein concentrate +80 which showed a gain of 40.4% over a year ago, totaling 7,356 metric tons and 17.8% year to date.
BUTTER
Butterfat exports continue to suffer with exports totaling only 2,294 metric tons, down 46.4% from a year ago. Year-to-date exports are down 45.5% compared to the same period last year. Nonfat dry milk/skim milk powder exports were down 20.1% at 53,256 metric tons with year-to-date exports down 2.2% from last year. Whole milk powder increased 10.8%, totaling 1,931 metric tons with year-to-date exports down 32.8%.
OUTSIDE MARKETS SUMMARY
December corn closed down 4 cents per bushel at $4.6400, January soybeans closed up 4 cents at $13.4750 and December soybean meal closed down $.50 per ton at $449.40. December Chicago wheat closed down 5.50 cents at $5.7525. December live cattle closed down $0.18 at $174.18. December crude oil is up $1.43 per barrel at $77.17. The Dow Jones Industrial Average is up/down 327 points at 34,219 with the NASDAQ up 255 points at 13,777.
