Tuesday Midday Dairy Market Summary - Class III Milk Futures Fall Despite Cash Support

OUTSIDE MARKETS SUMMARY:

CORN:	6 Higher
SOYBEANS:	14 Higher
SOYBEAN MEAL:	$3.50 Higher
LIVE CATTLE:	$1.15 Lower
DOW JONES:	125 Points Lower
NASDAQ:	177 Points Lower
CRUDE OIL:	$0.84 Higher

MIDDAY MARKET UPDATE:

The block cheese price remained steady at $1.91 with two loads traded. The barrel cheese price increased by 1.75 cents closing at $1.8250 with no loads traded. An unfilled bid for a load of barrels and an uncovered offer for a load of blocks remained at the close. The dry whey price remained unchanged at 75 cents. Class III futures were higher ahead of spot trading but came under significant pressure after spot trading with contracts from 37 cents lower to 1 cent higher. This price activity was unexpected along with a substantial increase in trading volume. The February contract has over 1,100 contracts traded so far today. The butter price decreased by 2.00 cents closing at $2.55 with no loads traded and four uncovered offers remaining at the close. Grade A nonfat dry milk decreased 0.75 cent closing at $1.3750 with seven loads traded. Class IV futures are 10 cents lower to 24 cents higher with trading activity confined to the January and February contacts. Today is the last trading day for December futures and options. The November Agricultural Prices report will be released this afternoon.