MILK
Class III milk futures fell during the week as the weakness of cheese provided no support. Buyers did not see the weakness as a buying opportunity in the cash market. It will take some bullish news to have the market rally back up to where it had been about a week ago. The September Cold Storage report could provide support as traders should view this as positive. Traders might buy into the futures next week, but it will need to be supported by cash. There are some positive reports of demand improving in some areas, but there will need to be further evidence of that over the next few weeks. The September Livestock Slaughter Report showed a further contraction of slaughter. Dairy cattle slaughter totaled 210,400 head, down 20,900 head from August. This was 30,100 head less than September 2023 and the lowest September slaughter since 2007.
AVERAGE CLASS III PRICES
| 3 Month: | $21.02 |
| 6 Month: | $20.38 |
| 9 Month: | $20.04 |
| 12 Month: | $19.89 |
CHEESE
For the week, blocks declined 2.50 cents with five loads traded. Barrels fell 14 cents with nine loads traded. Dry whey gained 0.25 cent with 13 loads traded. The September Cold Storage report showed a decline in inventory. American cheese stocks declined 10.8 million pounds from August totaling 782.8 million pounds. This was 8% below a year ago. Swiss cheese stocks declined 378,000 pounds totaling 22.2 million pounds, up 2% from the previous year. Other cheese inventory declined by 7.2 million pounds from August totaling 570.4 million pounds. Total cheese stocks declined 18.3 million pounds totaling 1.375 billion pounds, down 7% from September 2023.
BUTTER
For the week, butter increased by 3.50 cents with 15 loads traded. Grade A nonfat dry milk slipped by 0.50 cent with 32 loads traded. Butter inventory in September declined by 21.4 million pounds totaling 303.0 million pounds. This was 14% above a year ago. This will keep the upside of butter limited. Continued strong butter production may push inventory even higher than last year by the end of the year.
OUTSIDE MARKETS SUMMARY
December corn closed down 6.25 cents per bushel at $4.1525, November soybeans closed down 8.50 cents at $9.8775 and December soybean meal closed down $4.60 per ton at $305.80. December Chicago wheat closed down 12.50 cents at $5.6900. December live cattle closed down $0.10 at $189.15. December crude oil is up $1.59 per barrel at $71.78. The Dow Jones Industrial Average is down 260 points at 42,114 with the NASDAQ up 103 points at 18,519.
