OVERVIEW:
Butter cash price sets a new low, reaching prices last seen in early December of 2021. Milk and Cheese also drift lower as we kick off September with a short holiday week.
MILK:
Class III milk futures are currently trading 11 to 22 cents lower this afternoon after attempting to find support earlier in the day. Class IV milk struggled as well with butter prices making new lows. The Global Dairy Trade Price Index was down 4.3% on average, with drops in whole milk powder, skim milk powder, butter and mozzarella.
AVERAGE CLASS III PRICES:
| 3 Month: | $17.74 |
| 6 Month: | $17.67 |
| 9 Month: | $17.64 |
| 12 Month: | $17.65 |
CHEESE:
Cheese futures are 1.3 to 2.3 cents lower, unsurprisingly, after cheese blocks fell 1 cent in the cash trade today. Supply is plentiful and demand steady, so no new news to drive prices higher.
BUTTER:
Butter futures took another hit lower today after a disappointing 3.25-cent lower cash trade today, reaching new lows last seen on Dec. 3, 2021. With world supply in excess and a faltering world demand, we look domestically at a small reduction in butter in storage, wondering if there is hope for a bounce as we approach fall.
OUTSIDE MARKETS SUMMARY:
December corn closed 2.75 cents per bushel higher at $4.23, November soybeans closed down 13.75 cents at $10.41 and December soybean meal closed 5.2 cents per ton lower at $283.80. December Chicago wheat closed down 6 cents at $5.2825. October live cattle closed $0.125 lower at $239.525. October crude oil is up $1.53 per barrel at $65.53. The Dow Jones Industrial Average is off by 449 points at 45,295, with the NASDAQ down 175 points at 21,279.
