MILK
Class III milk futures were higher in response to the steady block cheese price and the increase in the dry whey price. Futures showed more gains after the CME settled the market for the day in continued trading into the close. This indicates further buying may be evident in the overnight trade. The front-month November contract showed strength due to the prices released in the weekly AMS dairy prices report being higher than expected. Trading volume was limited, with 87 contracts traded in that contract.
Milk output is generally steady throughout the country. Spot milk prices in the Central region have increased ranging from $0.50 to $3.00 over class. The demand for fluid milk is strong with retail demand improving. Milk components remain strong and above the levels of a year ago. The World Agricultural Supply and Demand Estimates report will be released tomorrow and will show USDA's expectations for milk production, milk prices, and dairy product prices for this year and 2025.
AVERAGE CLASS III PRICES
| 3 Month: | $19.61 |
| 6 Month: | $19.45 |
| 9 Month: | $19.29 |
| 12 Month: | $19.22 |
CHEESE
Cheese supplies are reported to be readily available for demand as time moves closer to the holidays. This will limit the aggressiveness of buyers with buying generally done as needed. Price increases may be short-lived as the strength will come from immediate orders that need to be filled above previously contracted amounts.
BUTTER
Food service demand is termed as steady to lighter while retail demand is improving. More consumers seem to be eating at home rather than at restaurants. Food prices in general are higher resulting in less dining out. Churning is active keeping supplies of fresh butter available and limiting inventory decline.
OUTSIDE MARKETS SUMMARY
December corn closed up 1.25 cents per bushel at $4.2750, January soybeans closed up 22.50 cents at $10.2625 and December soybean meal closed up $.10 per ton at $298.50. December Chicago wheat closed down 1.75 cents at $5.7150. December live cattle closed up $0.43 at $185.83. December crude oil is up $0.47 per barrel at $72.16. The Dow Jones Industrial Average is down 1 point at 43,729 with the NASDAQ is up 286 points at 19,269.
