MILK
At least there were some milk contracts closing in positive territory. However, the gains were limited due to limited movement of underlying cash. Milk production is slowly increasing but certainly not by leaps and bounds. Spot milk is becoming more available with spot milk prices at class to $1.00 below class. Butterfat content is improving which is allowing for more cream to be available. The average soybean meal price for September was released at $411.07. This was a decrease of $27.73 per ton from August and down $62.87 per ton from September 2022. This puts the income over feed price for September at $8.44. This compares to an income over feed of $6.46 in August and $8.63 for September 2022. The October Federal Order class prices were announced today with Class II at $21.95, up $1.97 from September. Class III was announced at $16.84, down $1.55 from the previous month. Class IV was announced at $21.49. up $2.40 from September 2022.
AVERAGE CLASS III PRICES
| 3 Month: | $17.24 |
| 6 Month: | $17.65 |
| 9 Month: | $17.93 |
| 12 Month: | $18.14 |
CHEESE
Processors indicate demand is good but not exceptional. However, the indication is that it is not too much different than last year. Yet, at the same time inventory has not declined sufficiently to bring inventory below a year ago. Inventory is not much different than last year, but current milk price is lower. Buyers are not concerned over supply and are content with purchasing on an as-needed basis.
BUTTER
The weakness of butter is not a surprise with more downside expected. Churning has increased due to more cream being available. Most of the butter orders for Thanksgiving have been filled with processors focusing on end of the year demand. Increased butter output should provide sufficient supply for demand with inventory making up the difference.
OUTSIDE MARKETS SUMMARY
December corn closed down 3.75 cents per bushel at $4.7500, January soybeans closed up 4.50 cents at $13.1500 and December soybean meal closed down $.60 per ton at $430.40. December Chicago wheat closed up 5.50 cents at $5.6175. December live cattle closed up $0.08 at $183.63. December crude oil is down $0.58 per barrel at $80.44. The Dow Jones Industrial Average is up 222 points at 33,275 with the NASDAQ up 210 points at 13,061.
