MILK
Milk prices bounced higher Monday as traders returned from last week's bearish market shifts. End of month and quarter buying seemed to be at least part of the upward market shift during early week trade, but there still remains a glimmer of hope that prices may be at or near seasonal lows. Spot month October contracts posted a 20 cent per cwt gain Monday, confirming price levels above $23 per cwt with a closing price of $23.33 per cwt. November and December contracts led the market higher with 41 and 45 cent per cwt gains respectively, with traders temporarily looking past the bearish tone seen over the last week, and more focus on potential product demand and lower supplies in the coming months. 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.
The August Agricultural Prices report was released last Friday, with All-milk price listed at $23.60 per cwt, compared to July levels of $22.80 and year ago price levels of $19.60 per cwt. Corn prices are listed at $3.84 per bushel, down $0.39 from July and down $1.89 from year ago levels. Soybean prices are listed at $10.30 per bushel, down $1 from July and down $4.20 per bushel from a year ago.
Alfalfa hay prices are listed at $175 per ton, compared to $145 per ton in July, and $174 per ton a year ago. Premium/Surpreme Hay price is listed at $236 per ton, down $1 per ton from July and down $46 per ton from year ago levels.
AVERAGE CLASS III PRICES
| 3 Month: | $23.17 |
| 6 Month: | $22.01 |
| 9 Month: | $21.15 |
| 12 Month: | $20.72 |
CHEESE
Cash cheese prices ended mixed Monday with limited trade seen on the midday exchange traded market. Barrel cheese prices posted the most aggressive losses, falling further from last Friday's lows, with a loss of 15 cents per pound. This moved barrel prices to $2.1475 per pound. Block prices posted a slight gain of 1 cent per pound, but with prices at $2.12 per pound, the market still remains extremely vulnerable given the inverse market relationship currently seen between the block and barrel markets. It is uncertain if the new month and beginning of the fourth quarter will bring about additional anxiety as to the further direction in the market, or if traders will now be willing and able to focus on upcoming seasonal demand and actively step back into the complex. Given the current market trend, price volatility is very possible over the next couple of weeks, but there is starting to be glimmers of hope that the bulk of market pressure has already been factored into the market.
BUTTER
Cash butter prices lead the move higher Monday as traders tried to bring some end of the month and quarter stability to the dairy complex. With 16 loads of butter selling on the exchange traded market, prices moved back from the lowest prices since early 2024 with markets gaining 7.25 cents per pound and closing at $2.805 a pound. It is still way to early to tell if the seasonal market low has been set, but the ability to bring significant activity and price support back to the table is a good sign that there may be further price support in the near future.
OUTSIDE MARKETS SUMMARY
December corn closed up 6.75 cents per bushel at $4.2475, November soybeans closed down 8.75 cents at $10.57 and December soybean meal closed down $2.50 per ton at $341.60. December Chicago wheat closed up 4.00 cents at $5.84. December live cattle closed up $0.33 at $184.80. November crude oil is up .17 per barrel at $68.35. The Dow Jones Industrial Average is up 17.15 points at 42,330.15 and NASDAQ is up 69.58 at 18,189.17.
