MILK
Class III milk futures moved lower with double-digit losses for November through April contracts. There is no bottom in this market. December Class III futures fell below $17.00 ending at $16.87. March futures closed below $18.00. The weakness of barrel cheese today moved price to the lowest level since October 4th. Sellers continue to offer cheese aggressively on the spot market. Manufacturers want to minimize buildup of supply at the plant level and intend to move it as quickly as possible at whatever price they can. This is a bearish trend for this time of year. The Global Dairy Trade auction trade weighted average price declined 0.7% on the event which took place today. This was the first decline after 4 consecutive events of gains, Anhydrous milk fat increased 3.1% to $5,489 per metric ton or $2.49 per pound. Butter price declined 1.6% to $4,890 per metric ton or $2.22 per pound. Buttermilk powder increased 3.5% to $2,323 per metric ton or $1.05 per pound. Cheddar increased 4.5% to $4,042 per metric ton or $1.83 per pound. Lactose jumped 19.2% to $718 per metric ton or $0.33 per pound. Skim milk powder gained 2.3% to $2,724 per metric ton or $1.24 per pound. Whole milk powder declined 2.7% to $2,971 per metric ton or $1.35 per pound.
AVERAGE CLASS III PRICES
| 3 Month: | $16.99 |
| 6 Month: | $17.44 |
| 9 Month: | $17.75 |
| 12 Month: | $17.99 |
CHEESE
There is sufficient cheese available for demand leaving buyers complacent. There is no concern over supply through the end of the year. The outlook for next year has dimmed as the inability of prices to be stronger at this time of year does not bode well for price potential. Historically, cheese prices generally soften at the end of the year and remain that way for a period, as the early part of the year usually sees lower demand.
BUTTER
Butter is falling as fast as it gained as buyers continue to place lower bids and sellers want to sell supply as quickly as they can. Some sellers had been holding back anticipating price would remain higher for a longer time, but they are now trying to sell as quickly as possible. No one wants to store butter high-priced butter when price is falling.
OUTSIDE MARKETS SUMMARY
December corn closed down 8.75 cents per bushel at $4.6850, January soybeans closed down 2.00 cents at $13.6200 and December soybean meal closed up $9.90 per ton at $447.40. December Chicago wheat closed down 5.50 cents at $5.7025. December live cattle closed down $2.55 at $178.78. December crude oil is down $3.69 per barrel at $77.13. The Dow Jones Industrial Average is up 57 points at 34,153 with the NASDAQ is up 121 points at 13,640.
.jpg)
