MILK
Both categories of cheese finally moved higher in tandem. This triggered the buying of milk futures, as some traders wanted to get out of their positions, while others wanted to buy into the market, thinking the bottom might be in. It will take further gains to increase the confidence of traders that prices may trend higher. The Global Dairy Trade Auction trade-weighted average price slipped 0.3% on Tuesday's event. The average price was $3,852 per metric ton with 38,956 metric tons sold. There were 169 bidders taking part in the event. Anhydrous milk fat increased 0.3% from the previous event, totaling $47,229 per metric ton, or $3.28 per pound. Butter slipped 0.3% to $6,495 per metric ton, or $2.95 per pound. Cheddar cheese increased by 4.2% to $4,702 per metric ton, or $2.13 per pound. Lactose decreased 5.8% to $985 per metric ton, or $0.41 per pound. Skim milk powder decreased by 1.8% to $2,745 per metric ton, or $1.25 per pound. Whole milk powder remained unchanged at $3,553 per metric ton, or $1.61 per pound. Mozzarella cheese fell 8.2%, totaling $4,559 per metric ton, or $2.07 per pound.
AVERAGE CLASS III PRICES
| 3 Month: | $21.50 |
| 6 Month: | $20.71 |
| 9 Month: | $20.25 |
| 12 Month: | $20.04 |
CHEESE
Tuesday's strength may cause sellers to step back to see how aggressive buyers will be. Hopefully, buyers will attempt to purchase cheese to take advantage of the lower prices and will leapfrog over each other to purchase before the prices rise too far. That would increase the buying interest in futures contracts. Holiday demand should improve over the next month, providing further support to the market.
BUTTER
Butter manufacturers have too much butter and are moving it to the market as soon as possible. There have been 79 loads of butter traded on the spot market this week. Buyers have been able to increase their supplies without having to chase the market. This is expected to limit the upside price potential, as buyers have plentiful supplies available, eliminating the need to be aggressive.
OUTSIDE MARKETS SUMMARY
December corn closed down 7 cents per bushel at $4.0125, November soybeans closed down 5 cents at $9.9100 and December soybean meal closed down $3.50 per ton at $311.80. December Chicago wheat closed down 5.75 cents at $5.7950. December live cattle closed down $1.40 at $186.53. November crude oil is down $3.25 per barrel at $70.58. The Dow Jones Industrial Average is down 325 points at 42,740, with the NASDAQ down 187 points at 18,316.
