MILK
Class III milk futures struggled much of the day but managed to close mixed. Most of the pressure was seen in the October and November contracts with those prices having to adjust to the weakness of the cheese prices. The selling pressure mounted in Class IV futures as the day progressed. Contracts suffered double-digit losses through the first half of 2025. Milk has become more available recently with spot milk prices steady to $1.50 below class. Much of that is due to various plants scheduling downtime for maintenance putting more milk on the market for a time. Milk production is near the low point for the year and may remain that way for a few weeks before production increases seasonally. Milk output may grow more than earlier anticipated if milk production per cow increases similar to what it did in August.
AVERAGE CLASS III PRICES
| 3 Month: | $23.13 |
| 6 Month: | $21.91 |
| 9 Month: | $21.01 |
| 12 Month: | $20.58 |
CHEESE
The block cheese price has fallen to the level it was a month ago. Buyers still have no real interest in stepping in aggressively. There is sufficient supply for demand. The August Cold Storage report showed cheese inventory below a year ago. The bearish aspect of the report was in the American cheese category. Inventory increased by 8.5 million pounds from July totaling 799.9 million pounds. Inventory generally declines during this time of year. Stocks are 6% below a year ago, but the gain in August is concerning and may be the reason behind the recent decline in cheese prices. Swiss cheese inventory totaled 22.5 million pounds in line with a year ago. Other cheese inventory totaled 577.9 million pounds, down 11.8 million pounds or 7% from a year ago. Total cheese inventory decreased by 2.9 million pounds totaling 1,400 billion pounds and 6% below a year ago.
BUTTER
The cold storage report shows why the butter price is experiencing weakness. Inventory declined 29.6 million pounds totaling 323.3 million pounds. This was positive, but inventory was 11% above a year earlier. Buyers see sufficient supply available and do not need to be aggressive.
OUTSIDE MARKETS SUMMARY
December corn closed down 2.00 cents per bushel at $4.1325, November soybeans closed down 12.25 cents at $10.4100 and December soybean meal closed down $1.40 per ton at $326.80. December Chicago wheat closed down 5.00 cents at $5.8425. December live cattle closed up $0.50 at $184.83. November crude oil is down $2.02 per barrel at $67.67. The Dow Jones Industrial Average is up 260 points at 42,175 with the NASDAQ up 108 points at 18,190.
