MILK
More pressure was put on Class III milk contracts in 2025 as the outlook for stronger milk prices has dimmed. Milk production has been increasing over the past few months but remains below a year ago. However, if the pattern continues with increased production per cow, output may end the year higher than the previous year. However, the increase in milk production may struggle due to reduced cow numbers and older cows being retained in the herds. Class IV futures have been under pressure due to the weakness of butter. Futures continue to remain higher than Class III but not as much as over the past few months.
AVERAGE CLASS III PRICES
| 3 Month: | $21.49 |
| 6 Month: | $20.66 |
| 9 Month: | $20.19 |
| 12 Month: | $19.99 |
CHEESE
Global cheese demand continues to increase with total world cheese trade up for 10 consecutive months through July. The U.S. exports continue to be one of the biggest beneficiaries despite the significant increase in U.S. prices during the first 8 months of this year. The cheese volume during this time jumped 15% compared to the same time last year. Domestic demand for cheese has not been growing as much as usual and anticipated. Demand is expected to improve through the rest of October and November as time moves closer to the holiday period. Spot cheese prices will hopefully improve as orders increase from retail and the food service industry.
BUTTER
The butter price is not far from eliminating the entire gain since the beginning of the year. The price is now down to the lowest level since January 24. The price reached a high earlier than usual but that was due to buyers being more aggressive earlier in the year and butter production remaining strong. Manufacturers put more bulk butter into inventory which moved butter stocks 11% above a year ago.
OUTSIDE MARKETS SUMMARY
December corn closed up 0.25 cent per bushel at $4.2100, November soybeans closed up 4.00 cents at $10.2025 and December soybean meal closed down $1.80 per ton at $321.20. December Chicago wheat closed up 4.25 cents at $5.9900. December live cattle closed down $0.65 at $187.23. November crude oil is down $0.24 per barrel at $73.33. The Dow Jones Industrial Average is up 431 points at 42,512 with the NASDAQ up 109 points at 18,292.
