MILK
Milk production is steady with some areas indicating a slight increase in production. Milk production should improve as the weeks progress. Milk output is not expected to overwhelm the market as cheese manufacturers utilize what milk is available to them. Some would like more milk to increase cheese production and meet improving demand. Buyers of cheese and butter are comfortable with supplies seeing no need to be aggressive ahead of the holidays. A further decline in the cheese inventory will not generate much excitement as the heavier demand period will last another two months and then the inventory will begin to build as demand slows. Bottled milk demand has been steady. USDA released the October Federal Order prices showed decreases in all categories from September. The Class II price is $21.01, down $1.39 from September and down $0.94 from October 2023. The Class III price is $22.85, down $0.49 from September, but up $6.01 from a year earlier. The Class IV price was $20.90. down $1.39 from September and $0.59 from October 2023.
AVERAGE CLASS III PRICES
| 3 Month: | $19.89 |
| 6 Month: | $19.72 |
| 9 Month: | $19.59 |
| 12 Month: | $19.57 |
CHEESE
Cheese demand is mixed. There is a dynamic across the country with some plants indicating increasing orders and strong demand. They are struggling to meet demand with the current milk supplies. These plants hope for increased milk receipts from farms to have more supply and to increase production schedules.
BUTTER
Buyer interest in butter has increased due to the market having possibly found a bottom. Buyers had been holding back in anticipation of further weakness. That may have run its course. However, buyers do not expect much upside price potential for the rest of the year as inventory is sufficient for demand and then some.
OUTSIDE MARKETS SUMMARY
December corn closed down 2.25 cents per bushel at $4.1150, January soybeans closed up 12.25 cents at $9.9125 and December soybean meal closed down $.20 per ton at $301.60. December Chicago wheat closed up 2.75 cents at $5.7325. December live cattle closed down $1.53 at $186.43. December crude oil is up $1.40 per barrel at $68.61. The Dow Jones Industrial Average is down 92 points at 42,142 with the NASDAQ down 105 points at 18,608.
