MILK
Class IV milk futures were a surprise today as numerous contracts closed with double-digit gains. It was another one of those days that did not make sense. The weakness of nonfat dry milk generally hurts futures, but the activity today showed otherwise. Futures were 1 to 20 cents higher. The past two days have shown positive gains as the futures adjust to underlying cash. Class III futures did not fare as well with closer contracts showing losses.
Milk production is slowly improving, keeping the market supplied. Interestingly, spot prices remain about $1 above class which has surprised the industry as bottling demand is slowing in preparation for school closings for Thanksgiving. This will allow for more milk to be available for manufacturing. Spot milk prices are generally lower throughout the holiday, but spot milk is reported as being tight.
AVERAGE CLASS III PRICES
| 3 Month: | $17.36 |
| 6 Month: | $17.75 |
| 9 Month: | $17.98 |
| 12 Month: | $18.16 |
CHEESE
Pizza cheese makers express that demand has improved recently with barrel cheese demand termed as steady. Blocks are struggling with business being done as needed, resulting in choppy price movement. This week, the cooperative export assistance program accepted requests for export assistance to sell 373,000 pounds of American-type cheese and 498,000 pounds of cream cheese.
BUTTER
It was interesting to see no buyers or sellers showing up in the spot market today. Sellers did not see the need to be aggressive after the recent bounce in price. Buyers had no need to purchase supply and were content to wait to see if the price would decline. Cream supply is more abundant, keeping churning active and increasing the availability of butter.
OUTSIDE MARKETS SUMMARY
December corn closed down 7.50 cents per bushel at $4.7075, January soybeans closed down 4.75 cents at $13.8500 and December soybean meal closed down $4.40 per ton at $469.20. December Chicago wheat closed down 11.50 cents at $5.6050. February live cattle closed up $1.90 at $178.78. December crude oil is down $1.73 per barrel at $76.53. The Dow Jones Industrial Average is up 164 points at 34,991 with the NASDAQ up 9 points at 14,104.
