OVERVIEW:
The minor decline of block cheese put some pressure on Class III futures, but contracts regained losses and then some as the slight weakness in cheese was absorbed. The Global Dairy Trade auction trade-weighted average increased 0.7% from the previous event.
MILK:
The slight decline in the block cheese price in spot trading initially put pressure on Class III futures, but it was not enough to maintain the weakness. Futures regained losses with some contracts posting gains. Class IV futures were under pressure due to further weakness in the butter price. The Global Dairy Trade auction trade-weighted average price increased 0.7% from the previous event. The average price was $4,249 per metric ton with 37,040 metric tons sold. This was the largest volume of dairy products sold during a single auction since October 2024. The anhydrous milk fat price increased 1.2% to $7,081 per metric ton or $3.21 per pound. Butter decreased 3.8% to $7,214 per metric ton or $3.27 per pound. Buttermilk powder decreased by 2.0% to $3,050 per metric ton or $1.38 per pound. Cheddar cheese decreased 0.6% to $4,575 per metric ton or $2.08 per pound. Mozzarella cheese decreased 0.1% to $4,690 per metric ton or $2.13 per pound. Skim milk powder increased 0.4% to $2.805 per metric ton or $1.27 per pound. Whole milk powder increased 2.1% to $4,012 per metric ton or $1.82 per pound.
AVERAGE CLASS III PRICES:
| 3 Month: | $18.11 |
| 6 Month: | $18.17 |
| 9 Month: | $18.07 |
| 12 Month: | $18.04 |
CHEESE:
Retail and food service demand for cheese remains lighter than desired and anticipated for this time of year in the Central region. Buying interest in cheese generally improves at this time of year as they look ahead to upcoming demand. However, there is concern this year that demand may remain lower, which would limit the upside potential for prices. The weakness in blocks and no buyer interest during spot trading may indicate prices may have reached a threshold again.
BUTTER:
The supply of cream is decreasing due to the impact of hotter weather. However, there remains sufficient cream for demand. Churning remains active, with some plants opting to sell cream due to strong prices. Rather than continuing to offer butter to the spot market, some is being frozen and stored for later demand.
OUTSIDE MARKETS SUMMARY:
December corn closed down .75 cent per bushel at $4.0125, November soybeans closed down 6.25 cents at $9.8450, and December soybean meal closed down $3.60 per ton at $281.30. September Chicago wheat closed up .25 cent at $5.0850. October live cattle closed up $2.55 at $229.65. September crude oil is down $0.88 per barrel at $64.28. The Dow Jones Industrial Average is up 81 points at 44,193, with the NASDAQ is up 253 points at 21,169.
