MILK
There was little to support stronger milk futures prior to spot trading. Futures remained higher after spot trading as traders were uncertain of further gains in block cheese. That idea eventually dissipated, resulting in pressure on contracts in 2025. Buyers of cheese and butter have not been aggressive over the past month and see little reason to be aggressive now. The increase in block cheese price was likely due to immediate orders that were placed and needed to be filled above already contracted supplies. Demand needs to increase quickly and significantly or there will be limited upside potential through the end of the year. Dairy exports in September increased 8.5% on a milk solids equivalent. This was the third consecutive month of year-over-year gains, making the third quarter the best quarter for exports since the fourth quarter of 2022. The export value jumped 18%, totaling $715.2 million.
AVERAGE CLASS III PRICES
| 3 Month: | $19.39 |
| 6 Month: | $19.18 |
| 9 Month: | $19.04 |
| 12 Month: | $19.00 |
CHEESE
Cheese exports remained strong in September, posting gains for nine consecutive months. Exports totaled 39,134 metric tons, up 6.9% from a year ago. Year-to-date exports are now up 19.9% from the same period last year. Whey exports totaled 46,315 metric tons, up 14.6% from a year ago with year-to-date exports up 8.2%. Lactose exports declined 8.6%, totaling 39,556 metric tons. Year-to-date exports are 9.1% below the same period last year.
BUTTER
Butterfat exports in September totaled 4,389 metric tons, up 91.3% over September 2023. Year-to-date exports are 13.0% above the same period last year. Nonfat dry milk/skim milk powder exports increased 15.6%, totaling 62,684 metric tons, but year-over-year exports remained 5.3% below a year ago. Whole milk powder exports increased 15.5%, totaling 2,230 metric tons, up 15.5% from a year ago with year-over-year exports down 4.6%.
OUTSIDE MARKETS SUMMARY
December corn closed down 1.50 cents per bushel at $4.2850, January soybeans closed down 11.75 cents at $10.1050 and December soybean meal closed down $2.20 per ton at $292.90. December Chicago wheat closed down 13.25 cents at $5.5225. December live cattle closed up $0.70 at $184.40. December crude oil is down $0.09 per barrel at $67.95. The Dow Jones Industrial Average is down 382 points at 43,911 with the NASDAQ down 17 points at 19,281.
