MILK
Milk futures have been trending lower in response to the weakness of the spot prices. Traders have not supported the market in anticipation of a short-lived decline. This decline is real with no indication as to whether it is overdone to the downside or if prices are near a support level. Futures tend to move further in a direction than necessary resulting in prices being overdone to the downside. However, support needs to surface at some point for the selling pressure to subside. Milk production is either at or near the lows and should slowly improve over the next few weeks. The milk production report indicated that a sufficient supply of milk should be available through the end of the year. This has set a negative tone in the market.
AVERAGE CLASS III PRICES
| 3 Month: | $22.97 |
| 6 Month: | $21.74 |
| 9 Month: | $20.91 |
| 12 Month: | $20.51 |
CHEESE
For the week, blocks declined 12.75 cents with eight loads traded. The average price for the week was $2.1640. The barrel price fell 29.50 cents with no loads traded. There have been no loads of barrels traded on the spot market since the record high on September 18. The price has declined by 32.50 cents since the peak with no loads traded and no buyers showing up in the spot market. I had written about a possible void developing in the market as the price increased rapidly. The average price for the week was 2.4520. Dry whey increases by a penny with seven loads traded. The average price for the week was 59.35 cents.
BUTTER
For the week, butter fell 23.25 cents with 38 loads traded. The price average for the week was 2.8445. Grade A nonfat dry milk declined by 2.25 cents with 35 loads traded. the weekly average price was $1.3775. The butter price is at the lowest level it has been since February 15.
OUTSIDE MARKETS SUMMARY
December corn closed up 4.75 cents per bushel at $4.1800, November soybeans closed up 24.75 cents at $10.6575 and December soybean meal closed up $17.30 per ton at $344.10. December Chicago wheat closed down 4.25 cents at $5.8000. December live cattle closed down $0.35 at $184.48. November crude oil is up $0.51 per barrel at $68.18. The Dow Jones Industrial Average is up 138 points at 42,313 with the NASDAQ down 71 points at 18,120.
