MILK
Milk futures closed higher Monday for contracts through the middle of 2024. Much of the buying was likely the result of short covering as traders wanted to preserve some profit if there was any to be had in case prices made a further retracement.
It may take a monumental effort to turn the trend higher for any extended period due to much of the buying for the holidays being mostly finished. Regular demand and fill-in orders will be needed to provide support. With milk production slowly improving and component values increasing, there will be no shortage of supply for processing. Harvest has been, or is being, wrapped up in many areas, leaving sufficient supplies of feed available and may result in reduced culling as farmers focus on balancing rations for optimum milk production rather than looking for feed for purchase.
AVERAGE CLASS III PRICES
| 3 Month: | $17.21 |
| 6 Month: | $17.58 |
| 9 Month: | $17.82 |
| 12 Month: | $18 |
CHEESE
The bounce of cheese prices was welcomed but may not be sustained. Buyer interest was limited, indicating just normal business was being done with limited participants. Cheese production is termed as steady with cheese yields improving as components are rising. Cheese export demand in September was higher than a year ago, providing some hope for better international demand. However, it is being compared with the lower exports of a year ago, making it not quite as supportive as it seems. At least it is moving in the right direction.
BUTTER
The fact that only one load traded with no unfilled bids or uncovered offers remaining might indicate only regular business needed to be done and not buying for increasing ownership to build inventory. In fact, the opposite is true as processors want to limit plant inventory and move it out as quickly as possible.
OUTSIDE MARKETS SUMMARY
December corn closed up 13.25 cents per bushel at $4.7725, January soybeans closed up 35 cents at $13.8250 and December soybean meal closed up $19.70 per ton at $469.10. December Chicago wheat closed up 3.75 cents at $5.7900. December live cattle closed up $0.75 at $174.93. December crude oil is up $1.36 per barrel at $78.53. The Dow Jones Industrial Average is up 55 points at 34,338 with the NASDAQ is down 30 points at 13,768.
