MILK
Milk prices continued to show pressure in nearby contracts with October contracts falling another 15 cents per cwt, moving below $23 per cwt at $22.95. The most significant pressure developed in November contracts, which is not surprising given the overall lack of support over the past couple of weeks in dairy product prices. Although there still seems to be hope and expectations that this downturn will find support in the near future, the focus on aggressive upward market movement in the next several weeks seems to be limited. Deferred prices seem to have found some limited support with early 2025 contract holding narrow single digit gains Wednesday. This could help to brighten the outlook for next spring and summer, but the concern surrounding the recent price tumble in dairy product prices still has milk futures generally unsupported.
AVERAGE CLASS III PRICES
| 3 Month: | $22.22 |
| 6 Month: | $21.19 |
| 9 Month: | $20.58 |
| 12 Month: | $20.31 |
CHEESE
Cash cheese prices continue to look for support midweek, but so far active price support is unable to develop with block cheedar prices falling another 5.25 cents per pound moving to $2.2275 a pound. Barrel cheese prices did move higher with prices gaining 0.75 cent per pound, but the lack of trades at this price level could limit follow through buyer support over the near future. The ability for both block and barrel prices to remain steady to higher is expected to bring about additional underlying support. It is uncertain just how much activity will be seen the rest of the week with only six loads of blocks selling through the week and four loads of barrel cheese selling. Once prices do find additional market support levels, it is expected that additional trade will develop in all markets.
BUTTER
Cash butter led the dairy complex lower once again Wednesday with prices falling 7 cents per pound, moving to a settlement price on the daily exchange of $2.68 per pound. Four loads of butter sold on the exchange with two additional offers going unfilled. The hope that markets have found support and started to stabilize earlier in the week and during the first couple days of October seem to have been unfounded for now with butter prices falling 12.5 cents per pound so far this week with a total of 20 loads of butter sold over the past three trading sessions. Some additional holiday and end of year buying is still expected to develop, but there tends to be a focus by buyers to allow for prices to find a sense of market support before aggressively stepping in and purchasing. Once price support does develop, it is very possible that prices may start pushing higher relatively quickly over the next couple of weeks. But the current milk production levels may make it hard to quickly regain all of the losses seen over the past few weeks. Nonfat Dry Milk prices posted fractional losses midweek, slipping just 0.25 cent per pound, but moderate activity and interest developed, indicating that there could be some additional but potentially narrow price shifts within the Nonfat Dry Milk market during early October. Dry Whey prices were unchanged in very light trade activity Wednesday.
OUTSIDE MARKETS SUMMARY
December corn closed up 3.50 cents per bushel at $4.3250, November soybeans closed down 1.25 cents at $10.5600 and December soybean meal closed down $7.10 per ton at $340.40. December Chicago wheat closed up 16.25 cents at $6.1525. December live cattle closed up $2.53 at $187.70. November crude oil is up .64 per barrel at $70.47. The Dow Jones Industrial Average is up 68.48 points at 42,217.3 and NASDAQ is up 36.17 at 17,947.58.
