MILK:
Traders were uncertain as to how to interpret the moving of spot prices today. Pressure was put on Class III futures after spot trading with traders focusing on the weakness of cheese and butter prices. Even though the block cheese price increased, there may be little upside price potential as blocks may not move very far in the opposite direction. However, it is possible the strength of blocks could be an indication of an increase in demand which could support the butter and barrel markets. The nearby contracts for Class III futures were higher while later contracts were lower. Class IV futures were the opposite with nearby contracts lower while later contracts showed gains. The bird flu virus was detected in a retail sample of raw milk from a dairy in California. Raw Farm, the dairy that packaged the milk issued a voluntary recall for one batch of "Cream Top" with a best buy date of November 27. This should not be a concern for all milk as pasteurization kills the virus, making milk safe to consume.
AVERAGE CLASS III PRICES:
| 3 Month: | $18.99 |
| 6 Month: | $18.93 |
| 9 Month: | $18.84 |
| 12 Month: | $18.82 |
CHEESE:
Spot cheese prices diverged with blocks increasing and barrels decreasing. This widened the spread to 5.50 cents with blocks above barrels. The October Cold Storage report showed that American cheese inventory declined 9.6 million pounds from September totaling 772.7 million pounds and 7% less than October 2023. Swiss cheese inventory declined 364,000 pounds to 22.7 million pounds but was 9% above a year ago. Other cheese inventory totaled 547.2 million pounds, down 16.4 million pounds from September and 9% from a year ago. Total cheese inventory declined by 26.3 million pounds totaling 1.343 billion pounds, down 8% from October 2023.
BUTTER:
Butter inventory in October declined substantially, dropping 38.8 million pounds from September totaling 267.5 million pounds. However, inventory continues to remain 11% higher than a year ago. This will continue to be an anchor in the market. The butter price today moved to the lowest level this year and back to the lowest price it has been since December 15, 2023.
OUTSIDE MARKETS SUMMARY:
December corn closed down 0.75 cent per bushel at $4.2475, January soybeans closed up 2.25 cents at $9.8575 and January soybean meal closed up $4.40 per ton at $295.90. March Chicago wheat closed down 9.00 cents at $5.5575. February live cattle closed down $0.50 at $187.70. January crude oil is down $2.16 per barrel at $69.08. The Dow Jones Industrial Average is up 440 points at 44,737 with the NASDAQ up 51 points at 19,055
