MILK
Milk futures were set back as traders focused more on the weakness of block cheese. The strength of the barrels was not enough to generate buying interest. It has been unusual lately to see weakness in cheese and this got trader's attention. Milk futures still show strong prices, but we do not like to see the weakness. The USDA released the World Agricultural Supply and Demand Report. They reduced their expectation of milk production this year to 225.9 billion pounds, down 400 million from the previous report. Milk production for 2025 was reduced by 300 million pounds to 227.9 billion pounds. Exports on a fat basis rose by 100 million pounds to 11.6 billion pounds but were left unchanged for the next year at 11.3 billion pounds. Exports on a skim-solids basis were raised by 100 million to 48.9 billion pounds and were reduced by 300 million pounds for 2025 at 49.8 billion pounds. The average Class III price was raised this year by $1.05 to $19.45 per cwt. The average price for 2025 was raised by $0.95 to $19.60 per cwt. The Class IV average price was raised this year to $21.00, up $0.29 from the previous estimate. The price for 2025 was raised by $0.25 to an average of $21.20. The All-milk price increased by $0.75 to an average of $23.05 while the price for next year is estimated at $23.45, up $0.70.
AVERAGE CLASS III PRICES
| 3 Month: | $23.39 |
| 6 Month: | $22.17 |
| 9 Month: | $21.16 |
| 12 Month: | $20.69 |
CHEESE
The Class III daily price calculation increased due to the strength of the barrels and the fact that the formula is weighted more heavily toward barrels. Traders were not anxious to buy into the market as concern increased over the weakness of blocks. The USDA was optimistic for cheese prices this year and next year. The average price this year was raised to $1.93 per pound, up 10.50 cents from the August estimate. The price for 2025 was raised to $1.94, up 9 cents. The dry whey price increased by 0.50 cent to an average of 47.50 cents for this year and raised by 3.50 cents next year to an average of 48.50 cents.
BUTTER
The fall in the butter price was a surprise and should turn traders more aggressive tomorrow as they may take advantage of the lower price. The USDA raised the butter price by a penny this year to an average of $3.00 and raised the price by 2 cents next year to an average of $3.0050 per pound. The nonfat dry milk price increased 2.50 cents to an average of $1.22 this year and raised 1.50 cents next year to $1.2350.
OUTSIDE MARKETS SUMMARY
December corn closed up 1.25 cents per bushel at $4.0600, November soybeans closed up 10.25 cents at $10.1075 and December soybean meal closed up $3.20 per ton at $323.20. December Chicago wheat closed down .75 cent at $5.7850. October live cattle closed up $1.08 at $178.03. October crude oil is up $1.88 per barrel at $69.19. The Dow Jones Industrial Average is up 235 points at 41,097 with the NASDAQ up 174 points at 17,570.
