MILK
Milk futures were generally under pressure with Class III futures entrenched in a downtrend. The current fundamentals do not provide much support to the market. The calendar flips to November tomorrow and there is not much increase in the overall demand for dairy products as one would think there should be. The high prices of food, goods, and services are having an impact on consumer spending. Milk production will continue to hold well and likely increase as farms push milk production to maintain cash flow. The USDA released the September Agricultural Prices report today. The average corn price was $3.98 per bushel compared to $3.84 in August and $5.21 in September 2023. The average supreme/premium hay price was $227.00 per ton compared to $236.00 for August and $288.00 per ton a year ago. The All-milk price was $25.50 per cwt compared to $23.60 in August and $20.90 per cwt a year ago. The average soybean meal price is not on this report and is generally released by the FSA the following morning. However, looking at the prices on this report that make up the income over feed price for the Dairy Margin Coverage program, it is seen that the income over feed price will be higher than in August. The average soybean price was $10.20 per bushel compared to $10.30 in the previous month and $13.20 in September 2023. The alfalfa hay price was $172.00 per ton compared to $175.00 in August and $225.00 per ton in September 2023.
AVERAGE CLASS III PRICES
| 3 Month: | $20.98 |
| 6 Month: | $20.38 |
| 9 Month: | $20.03 |
| 12 Month: | $19.88 |
CHEESE
The block cheese price has declined to the lowest level since August 5. The barrel cheese price is at the lowest level since October 14. The price has not moved back as much as blocks but has declined more than blocks since the middle of September. Spot milk prices are $0.50 to $1.50 over class with plants having to go out and look for it rather than having milk handlers calling them. This does not mean the supply is tight, but it is not overwhelming the market.
BUTTER
Butter is seeing some support, but it is not expected to improve the price to any great extent for a long duration of time. The butter supply is sufficient for the holiday season with the price potentially having limited upside potential.
OUTSIDE MARKETS SUMMARY
December corn closed down 0.75 cent per bushel at $4.1075, January soybeans closed up 3.25 cents at $9.9450 and December soybean meal closed down $2.10 per ton at $299.50. December Chicago wheat closed down 2.75 cents at $5.7050. December live cattle closed down $0.13 at $186.30. December crude oil is up $0.65 per barrel at $69.26. The Dow Jones Industrial Average is down 378 points at 41,763 with the NASDAQ down 513 points at 18,095.
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