OUTSIDE MARKETS SUMMARY:
| CORN: | 2 3/4 Higher |
| SOYBEANS: | 4 1/4 Lower |
| SOYBEAN MEAL: | $5.00 Lower |
| LIVE CATTLE: | $2.12 Higher |
| DOW JONES: | 3 Points Higher |
| NASDAQ: | 46 Points Higher |
| CRUDE OIL: | $0.29 Higher |
MIDDAY MARKET UPDATE:
On the second day of October trade, essentially where the first trading session of the month ended, with prices focused on continued market softness as traders remained defensive but hopeful that buyer support will soon step back into the complex. Although cash butter and cheese prices are testing 8-month lows, milk prices still remain hovering within the top end of the summer and fall trading range. Nearby Class III milk futures are still above support levels set in September. The ability to keep spot October futures above the $22.50 per cwt benchmark could add long-term support to the entire dairy complex.
Recent hot weather in several dairy producing areas, along with storm damage through the Southeast, associated with Hurricane Helene continue to reduce overall milk production levels through the fall. The cooler weather in the upcoming weeks is expected to improve overall milk production in most areas, allowing for more seasonal production through the end of the year. Year-end and holiday buying activity is still developing, but the recent pullback in cash and futures prices over the last two weeks have allowed some buyers to purchase immediate needs, with additional orders being delayed until prices stabilize. Some purchasing agents are attempting to hit the market bottom for longer-term dairy product market needs.
Cash butter prices fell to $2.68 per pound following a 7 cent per pound reduction with four loads reported traded on the exchange. Cheese prices were mixed with block cheese prices falling an additional 5.25 cents per pound to $2.0275, while barrel cheese prices increased fractionally by 0.75 cent per pound to $2.1525 per pound. Limited activity developed in cheese trade indicates that the amount of product being traded at these price levels may be minimal at best.
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