Friday Closing Dairy Market Update - Milk Futures Close Lower for the Week

OVERVIEW:

Class III milk futures took a hit today as spot cheese prices declined. Futures did not lose what was gained recently, but this action may indicate that an upside price threshold may have been reached.

MILK:

Class III futures were slightly lower for the week, but held mostly in a sideways trading range. The underlying cash did not provide much direction for futures. This may be expected through the end of the year. Hopefully, underlying cash prices have established their lows, allowing prices to hold or increase over time. Class IV futures continued their weakness with the November contract closing below $14.00. The November Class IV price will be $3.50 below the November Class III price if the current prices come to fruition. Milk production continues to increase seasonally, but the volume does not overwhelm the market, as demand for milk has increased from both bottling and manufacturing. The September Agricultural Prices report was scheduled to be released today, but wasn't due to the government shutdown. Based on milk and grain prices for September, there would not have been any Dairy Margin Coverage payment.

AVERAGE CLASS III PRICES:

3 Month:	$17.18
6 Month:	$16.91
9 Month:	$16.92
12 Month:	$17.07

CHEESE:

For the week, blocks declined by a penny with 21 loads traded. The weekly average price was $1.8080. Barrels gained 3.50 cents with one load traded. The weekly average price was $1.8120. Dry whey increased 2.00 cents with one load traded. The weekly average price was 70.00 cents. Buying interest for cheese waned into the end of the week, while dry whey showed greater potential.

BUTTER:

For the week, butter gained 0.75 cent with 22 loads traded. The weekly average price was $1.58. Grade A nonfat dry milk declined 2.75 cents with seven loads traded. The weekly average price was $1.1575. The movement of the underlying cash during the week left little reason for butter futures to show much upward momentum. The longer-term outlook is not very positive through the end of the year.

OUTSIDE MARKETS SUMMARY:

December corn closed up 1.25 cents per bushel at $4.3150, January soybeans closed up 7.50 cents at $11.1525 and December soybean meal closed up $6.00 per ton at $321.60. December Chicago wheat closed up 9.75 cents at $5.3400. December live cattle closed down $1.43 at $229.68. December crude oil is up $0.41 per barrel at $60.98. The Dow Jones Industrial Average is up 41 points at 47,563, with the NASDAQ up 144 points at 23,725.

Friday Midday Dairy Market Summary - Cheese Prices Fall Back

OUTSIDE MARKETS SUMMARY:

CORN:	2 Higher
SOYBEANS:	4 Higher
SOYBEAN MEAL:	$6.80 Higher
LIVE CATTLE:	$2.62 Lower
DOW JONES:	143 Points Lower
NASDAQ:	74 Points Higher
CRUDE OIL:	$0.39 Higher

MIDDAY MARKET UPDATE:

The block cheese price declined 5.74 cents, closing at $1.7675 with one load traded. The barrel cheese price declined 1.50 cents, closing at $1.8050 with no loads traded. There were three uncovered offers for blocks and one uncovered offer for barrels. No unfilled bids remained at the close of spot trading. The dry whey price increased a penny, closing at 71.00 cents with no loads traded. Class III futures are 23 cents lower to 2 cents higher. The butter price gained 3.75 cents, closing at $1.61 with 16 loads traded. Grade A nonfat dry milk slipped 0.75 cent to close at $1.1325 with no loads traded. Class IV futures are 12 cents lower to 11 cents higher. Butter futures are 0.20 to 3.17 cents higher. Dry whey futures are 1.50 cents lower to 1.00 cent higher. Cheese futures are 3.10 cents lower to 0.30 cent higher.

Friday Morning Dairy Market Update - Spot Markets May Remain Choppy

OPENING CALLS:

Class III Milk Futures:	2 to 5 Lower
Class IV Milk Futures:	Mixed
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	2 to 3 Lower
Soybean Futures:	1 to 3 Lower
Soybean Meal Futures:	$1 to $2 Lower
Wheat Futures:	4 to 5 Lower

MILK:

There is little reason for milk prices to increase. Underlying cash prices show little to get excited over, as business is being done without much fanfare. There is nothing to hinder the seasonal uptrend in milk production. It seems that cow numbers are being maintained or increasing. Without the benefit of government reports, we can only assess that based on information received from contacts in the country. High replacement cattle prices will influence farmers to hold onto cows that are paid for. Even if those cows are not high milk producers, they will still have a calf that is worth a lot of money, either as a replacement heifer or as a beef calf.

CHEESE:

Spot cheese prices may have limited upside potential from the current level, but prices may hold as demand improves for the holiday season. Increasing cheese production should keep a sufficient supply available to the market, reducing the amount of drawdown in inventory.

BUTTER:

The price is expected to continue fluctuating within the current lower range. The market may be developing support at the lows. Higher cream supplies are keeping churning active. Bulk butter supplies are sufficient, with the focus being on butter production for the retail market.

Thursday Closing Dairy Market Update - Class III and Class IV Price Spread Widens

OVERVIEW:

Class III futures closed mixed, receiving little direction from the spot market. The increase in the butter price was offset by the weakness of nonfat dry milk. The September Agricultural Prices report is scheduled to be released on Friday but will not be due to the government shutdown.

MILK:

The news of the market is consistent with milk production increasing seasonally and components being stronger than a year ago. The weather remains favorable for cow comfort, and there are sufficient supplies of feed available. Much of the feed supply is of good quality. The spreads between Class III and Class IV futures continue to widen. I track the price calculation based on the spot prices each day. If the spot prices today were the average prices for a month, the Class III price would be $19.19, and the Class IV price would be $14.30. This will not be what they will be, as the weekly average AMS prices may be somewhat different, and it is only one day of cash prices out of a month. It does show a substantial difference between the two classes that may remain for quite some time based on the current market fundamentals.

The September Agricultural Prices report will not be released on Friday as scheduled due to the government shutdown. It will not make any difference because there would be no Dairy Margin Coverage price payment anyway for the month due to the income over feed price not being low enough to trigger a payment.

AVERAGE CLASS III PRICES:

3 Month:	$17.25
6 Month:	$16.99
9 Month:	$17.00
12 Month:	$17.13

CHEESE:

The stability in the cheese market today did not provide market direction. It is uncertain whether buyers are not willing to bid higher or if the current price levels indicate support under the market. Cheese demand is improving, but so is milk production, resulting in increased cheese production. Most of the cheese buying for packaging for the holidays has been finished. Fresh cheese demand will remain as retail demand improves.

BUTTER:

The butter price avoided falling back to the low with light buying supporting the price today. Sellers may not be willing to push the price lower for the time being. The focus of butter production is for retail, as consumers will increase their purchases for the holiday season.

OUTSIDE MARKETS SUMMARY:

December corn closed down 3.75 cents per bushel at $4.3025, January soybeans closed up 13.25 cents at $11.0775 and December soybean meal closed up $6.90 per ton at $315.60. December Chicago wheat closed down 8.00 cents at $5.2425. December live cattle closed up $0.20 at $231.10. December crude oil is up $0.09 per barrel at $60.57. The Dow Jones Industrial Average is down 110 points at 47,522, with the NASDAQ down 377 points at 23,581.

Thursday Midday Dairy Market Summary - Steady Cheese Prices Are Unable to Provide Support

OUTSIDE MARKETS SUMMARY:

CORN:	3 Lower
SOYBEANS:	4 Higher
SOYBEAN MEAL:	$7.40 Higher
LIVE CATTLE:	$0.25 Lower
DOW JONES:	105 Points Higher
NASDAQ:	228 Points Lower
CRUDE OIL:	$0.23 Higher

MIDDAY MARKET UPDATE:

Both the block and barrel cheese prices remained unchanged at $1.8250 and $1.80, respectively. There were two unfilled bids and two uncovered offers for blocks remaining at the close. No buyers or sellers showed up to do any business today. The dry whey price remained unchanged at 70.00 cents with no loads traded. Class III futures are 18 cents lower to 3 cents higher, with the only gain being in the June contract. The butter price increased 1.75 cents, closing at $1.5725 with two loads traded. Grade A nonfat dry milk decreased 2.25 cents to close at $1.14 with no loads traded. Class IV futures are 4 to 10 cents lower. Butter futures are 0.50 to 2.90 lower. Dry whey futures are unchanged. Cheese futures are 1.30 lower to 0.70 higher.

Fluid Milk and Cream - Western U.S. Report 44

California week over week milk production is stronger and fat components in milk output remain strong. Spot milk loads are still available. However, stakeholders convey some downtime at plants is keeping open processing space snug, which is making it more challenging to find homes for spot milk loads. According to the California Department of Water Resources, as of October 28, 2025, the state precipitation total is .74 inches above the historical mean of 1.09 inches and the statewide reservoir storage level is comfortably above the historical average, which is accommodating dairy farmer and processor needs. 

In Arizona and New Mexico, farm level milk output is stronger. 

Pacific Northwest milk production varies from steady to stronger. Manufacturers convey contractual milk volumes are being delivered, but spot milk load availability is tighter. 

In the mountain states of Idaho, Utah, and Colorado, week over week farm level milk output varies from steady to stronger. Stakeholders convey plenty of milk is available to fill needs of processors. All Class demands are steady throughout the region. 

Cream is plentiful throughout the West. Cream demand varies from steady to stronger. Cream multiples are unchanged from week 43. Condensed skim milk loads are available to fill steady spot buyer demand. 

Thursday Morning Dairy Market Update - Traders Will Be Cautious Ahead of Spot Trading

OPENING CALLS:

Class III Milk Futures:	Mixed
Class IV Milk Futures:	4 to 8 Lower
Butter Futures:	Steady to 1 Lower

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	4 to 6 Lower
Soybean Futures:	16 to 19 Lower
Soybean Meal Futures:	2 to 3 Lower
Wheat Futures:	9 to 10 Lower

MILK:

There has not been much change in fundamentals in the dairy market. There had been concern expressed by many over the meltdown in the cattle market over the past week. However, this is unlikely to have a lasting impact on the market, as cattle numbers are currently low and are not expected to change anytime soon. Calf prices are expected to remain strong and continue to be a significant revenue source for farms. Secretary of Agriculture Brooke Rollins said on Wednesday that cattle imports from Mexico will not resume anytime soon. This provided substantial support to cattle futures. Dairy cow numbers remain high, with some farm expansions continuing to take place. Milk production will remain strong.

CHEESE:

Barrel cheese supply remains tight, with price supported by limited trading activity. Blocks have been seeing more activity, but that has not put pressure on the price. There is good demand for fresh cheese. Increasing cheese production due to higher milk output will keep sufficient milk available for needs.

BUTTER:

It will be interesting to see whether buyers will step back in to purchase butter after the recent decline or if the market will make a new low for the year. The low last week was $1.5450, with the price on Wednesday just one penny above that level.

Wednesday Closing Dairy Market Update - Class IV Futures Show Double-digit Losses

OVERVIEW:

Class III futures gained some strength later in the day, with most traded contracts posting gains. Class IV contracts showed increased losses, with all contracts posting double-digit declines. The production of seasonal dairy products is increasing.

MILK:

As traders digested the minor movement of spot prices, Class III contracts began finding support later in the day. Class IV contracts saw pressure as weakness in butter and nonfat dry milk increased the negativity of traders. Milk production continues to improve, with weather contributing to greater cow comfort. The seasonal production of dairy products for the upcoming holiday period is increasing the demand for milk and cream for Class II production. Demand is improving for some dairy products and is higher in some cases than it was a year ago. This may be the result of delayed buying interest due to previous low prices and buyers purchasing on an as-needed basis. Buyers have been increasing their purchases due to the increase in demand. Milk futures remain significantly lower than a year ago. To put it in perspective, November Class III futures were nearly $2.00 higher a year ago. November Class IV futures were about $7.40 higher than currently.

AVERAGE CLASS III PRICES:

3 Month:	$17.33
6 Month:	$17.04
9 Month:	$17.04
12 Month:	$17.18

CHEESE:

Overall, cheese demand is improving, but increasing milk production is keeping sufficient milk available for manufacturing. There was a slight increase in spot milk prices from last week, with current prices ranging from flat class to $2.00 over. Spot loads of block cheese are available to the market, but the supply of barrel cheese remains tight.

BUTTER:

Butter production is strong as churns utilize the available cream. Most plants are operating seven days a week. Retail and food service demand is improving, requiring inventory supply to supplement fresh production. This is not unusual, but what may be unusual is that increased production may reduce the volume of butter needed to supplement current output.

OUTSIDE MARKETS SUMMARY:

December corn closed up 2.00 cents per bushel at $4.3400, January soybeans closed down .75 cent at $10.9450 and December soybean meal closed up $2.20 per ton at $308.70. December Chicago wheat closed up 3.25 cents at $5.3225. December live cattle closed up $4.33 at $230.90. December crude oil is up $0.33 per barrel at $60.48. The Dow Jones Industrial Average is down 74 points at 47,632, with the NASDAQ up 131 points at 23,958.

Wednesday Midday Dairy Market Summary - Butter Slips Closer to the Low

OUTSIDE MARKETS SUMMARY:

CORN:	2 Higher
SOYBEANS:	4 Higher
SOYBEAN MEAL:	$4.10 Higher
LIVE CATTLE:	$3.55 Higher
DOW JONES:	138 Points Higher
NASDAQ:	142 Points Higher
CRUDE OIL:	$0.47 Higher

MIDDAY MARKET UPDATE:

The block cheese price increased 0.25 cent to close at $1.8250 with seven loads traded. The barrel price remained unchanged at $1.82 with no loads traded. Buyers did show up at the spot market today with unfilled bids remaining at the close. The dry whey price was unchanged at 70.00 cents with no loads traded. Class III futures are 8 cents lower to 12 cents higher. The butter price slipped 0.75 cents, closing at $1.5550 with no loads traded. There was an unfilled bid and eight uncovered offers remaining at the close. Grade A nonfat dry milk declined 2.00 cents to close at $1.1625 with no loads traded. Class IV futures are 4 to 16 cents lower. Butter futures are 1.25 to 3.75 cents lower. Dry whey futures are 0.45 to 1.50 cents higher. Cheese futures are 1.20 cents lower to 1.00 cents higher.

Wednesday Morning Dairy Market Update - Traders Anticipate Weakness

OPENING CALLS:

Class III Milk Futures:	5 to 8 Lower
Class IV Milk Futures:	4 to 8 Lower
Butter Futures:	1 to 2 Lower

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	1 to 2 Lower
Soybean Futures:	4 to 6 Lower
Soybean Meal Futures:	Steady to $1 Lower
Wheat Futures:	1 to 3 Lower

MILK:

Milk futures may retrace somewhat as there is anticipation that the underlying cash may show weakness. The reason for the anticipation of lower spot cheese prices is the pattern that has been prevalent for some time, characterized by limited upside price movement. There were no unfilled bids remaining at the close of spot trading on Tuesday, possibly indicating buyers' needs have been filled. There may be limited potential for futures to continue higher at this time of year unless demand improves and supply tightens.

CHEESE:

The block cheese price has increased 9.75 cents over the past three days, moving to the highest level since Aug. 20. Sellers may step in to take advantage of the higher price to move supplies more aggressively. Cheese production is steady to higher as milk receipts continue to increase at the plant level.

BUTTER:

The weakness in butter on Tuesday might continue today as buyers step back and sellers want to move product. We cannot rule out the potential for the price to make a new low for the year. Even though it is reported that inventory is decreasing, there is a sufficient supply available to meet demand.

Tuesday Closing Dairy Market Update - Milk Futures Close Under Pressure

OVERVIEW:

Milk futures were under pressure. Stronger cheese prices did not provide support to Class III contracts. Traders seemed to focus more on the renewed weakness of butter.

MILK:

The November Class III milk contracts pushed above $18.00 during the day but fell quite a bit later Tuesday. Traders seemed to focus on the weakness of butter rather than the strength of cheese. The potential for much upside movement is expected to be limited. However, buying interest for fresh cheese could be stronger than anticipated, moving closer to the holidays. Milk production is increasing and is being readily absorbed by the market. Stronger milk production is expected to continue over the next few months unless an unforeseen event takes place. Even though there has been substantial pressure on the cattle markets over the past few days, prices remain high and may not impact the prices received for calves for any length of time. There should not be a large increase in culling that would reduce cow numbers significantly. Keeping barns full will be the focus despite the current milk prices.

AVERAGE CLASS III PRICES:

3 Month:	$17.28
6 Month:	$17.01
9 Month:	$17.00
12 Month:	$17.15

CHEESE:

Cheese prices have now increased for three consecutive days, with prices showing surprising strength under the current market environment. The interest of buyers might be nearing an end as there were no unfilled bids remaining at the close of spot trading. It is not certain that prices have reached a threshold, but price increases have not lasted very long over the past few months.

BUTTER:

The weakness in butter Tuesday may cause buyers to step back and sellers to be more aggressive. This could increase pressure on the market and result in a new low for the year. Bulk butter is in plentiful supply, with much of the butter production for the retail market. Consumer demand has improved, but it is not enough to provide support under the spot market.

OUTSIDE MARKETS SUMMARY:

December corn closed up 3.25 cents per bushel at $4.3200, January soybeans closed up 10.25 cents at $10.9525 and December soybean meal closed up $8.30 per ton at $306.50. December Chicago wheat closed up 3.00 cents at $5.2900. December live cattle closed down $0.60 at $226.58. December crude oil is down $1.15 per barrel at $60.16. The Dow Jones Industrial Average is up 162 points at 47,706, with the NASDAQ up 190 points at 23,827.

Tuesday Midday Dairy Market Summary - Cheese Strength Does Not Support Class III Futures

OUTSIDE MARKETS SUMMARY:

CORN:	1 Higher
SOYBEANS:	6 Higher
SOYBEAN MEAL:	$6.20 Higher
LIVE CATTLE:	$1.00 Lower
DOW JONES:	326 Points Higher
NASDAQ:	183 Points Higher
CRUDE OIL:	$1.10 Lower

MIDDAY MARKET UPDATE:

The block cheese price increased 2.25 cents, closing at $1.8225 with nine loads traded. The barrel cheese price increased 2.50 cents, closing at $1.82 with one load traded. There were no unfilled bids remaining in either category. The dry whey price increased a penny, closing at 70.00 cents with one load traded. Class III futures are 30 cents lower to 2 cents higher, with the only gain being in the October contract. The butter price fell 3.75 cents with four loads traded. There were two unfilled bids and eight uncovered offers remaining at the close of spot trading. Grade A nonfat dry milk increased 1.25 cents to close at $1.1825 with three loads traded. Class IV futures are 2 to 25 cents lower. Butter futures are 0.02 to 4.82 cents lower. Dry whey futures are 0.70 cent lower to 0.32 cent higher. Cheese futures are 2.40 cents lower to 0.10 cent higher.

Tuesday Morning Dairy Market Update - Traders Cautious Over Continued Strength

OPENING CALLS:

Class III Milk Futures:	Steady to 4 Higher
Class IV Milk Futures:	Mixed
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	1 to 2 Higher
Soybean Futures:	8 to 10 Higher
Soybean Meal Futures:	$3 to $4 Higher
Wheat Futures:	4 to 5 Higher

MILK:

The strength in the underlying spot cheese and dry whey prices has led to a notable increase in Class III futures. The market may be finding an equilibrium where supply and demand are balanced for the time being. If prices were to remain at current levels, it would be a vast improvement over what they were a few weeks ago. The key is whether prices will hold moving through the end of the year. The weather has been good for comfort, allowing for milk production to steadily increase. Bottlers and manufacturers are not concerned about the milk supply.

CHEESE:

Spot cheese prices have increased over the past two days and may be near a level at which sellers will become more aggressive, taking advantage of the higher prices. Cheese production has increased, but has not overwhelmed the market. Rather, it is keeping up with demand and limiting the decrease in inventory.

BUTTER:

The price may chop around at the current lower level. Business is being done and churning is active. Many plants are churning seven days a week to utilize the cream supply. This limits the amount of butter coming from inventory to supplement the fresh supply. Retail demand has been improving.

Monday Closing Dairy Market Update - Milk Futures Post Gains

OVERVIEW:

Class III milk futures closed higher, but not as much as would have been expected. The price moved above the high of last week. Barrels followed suit and moved to the highest level since September 3.

MILK:

The November Class III milk contract moved to $18.09 but fell back from that level to close below $18.00. This is the first time it has been above $18.00 since August 27. The November contract has increased by about $1.80 per cwt over the past two weeks. The recent increase has been a surprise as prices usually show weakness at this time of year. Maybe the market is making a counter-seasonal movement. However, it is unlikely the recent trend will continue through the end of the year. Class IV futures have not seen the strength of Class III, with the spread continuing to widen. Milk production is not slowing down but is increasing seasonally.

AVERAGE CLASS III PRICES:

3 Month:	$17.36
6 Month:	$17.16
9 Month:	$17.14
12 Month:	$17.25

CHEESE:

The block cheese price moved to the highest level since August 28. The barrel cheese price moved to the highest level since September 3. Much of the buying strength is tied to orders being filled that have been recently placed. The spot market is a fresh cheese market, and that is in greater demand at present. Cheese has been purchased ahead of the holiday season and is being recut and packaged for retail and gift boxes.

BUTTER:

The slight decline in the butter price does not necessarily mean that the price will fall back to a new low again. However, it may indicate that buyers will not be aggressive at higher prices. Butter production is increasing due to heavier cream supplies. Bulk butter supplies are sufficient moving toward the holiday season.

OUSIDE MARKETS:

December corn closed up 5.50 cents per bushel at $4.2875, November soybeans closed up 25.50 cents at $10.6725 and December soybean meal closed up $4.10 per ton at $298.20. December Chicago wheat closed up 13.50 cents at $5.2600. December live cattle closed down $6.75 at $227.18. December crude oil is down $0.19 per barrel at $61.31. The Dow Jones Industrial Average is up 337 points at 47,545, with the NASDAQ is up 433 points at 23,637.

Monday Midday Dairy Market Summary - Cheese Continues Higher

OUTSIDE MARKETS SUMMARY:

CORN:	8 Higher
SOYBEANS:	30 Higher
SOYBEAN MEAL:	$4.50 Higher
LIVE CATTLE:	$6.35 Lower
DOW JONES:	187 Points Higher
NASDAQ:	376 Points Higher
CRUDE OIL:	$0.04 Higher

MIDDAY MARKET UPDATE:

The block cheese price increased 2.25 cents, closing at $1.80 with four loads traded. The barrel cheese price increased 2.50 cents, closing at $1.7950 with no loads traded. Barrels remain in a tight supply position with limited trading activity. The dry whey price remained unchanged at 69.00 cents with no loads traded. Class III futures are 3 cents lower to 15 cents higher. The only loss is in the October contract, with very limited trading activity. The butter price slipped 0.25 cent, closing at 41.60 with no loads traded. Grade A nonfat dry milk increased a penny to close at $1.17 with four loads traded. Class IV futures have not yet been traded. Butter futures are 1.50 cents lower to 0.27 cent higher. Dry whey futures are 0.07 cent lower to 1.15 cents higher. Cheese futures are 0.20 cent lower to 1.10 cents higher.

Monday Morning Dairy Market Update - Traders Show Optimism Over Spot Prices

OPENING CALLS:

Class III Milk Futures:	5 to 10 Higher
Class IV Milk Futures:	4 to 8 Higher
Butter Futures:	1 to 2 Higher

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	5 to 8 Higher
Soybean Futures:	16 to 20 Higher
Soybean Meal Futures:	2 to 3 Higher
Wheat Futures:	10 to 12 Higher

MILK:

The strong close of milk futures on Friday carried over through the overnight trade. Traders may feel that the strength in the spot prices on Friday will continue today. It was interesting to see the strength in Class III milk futures last week despite limited gains in the cheese prices for the week. The strength came from the increase in the dry whey price. Fundamentally, the market has not changed much over the past weeks. Milk production is increasing seasonally, leaving sufficient milk available for demand from bottling and manufacturing.

CHEESE:

It was a nice bump in cheese prices on Friday, which provided support to futures prices. The upside potential for prices may be limited if the pattern holds that once buyers' needs are satisfied, prices will fall back. There is sufficient supply for demand, with production continuing as milk production increases.

BUTTER:

Retail butter demand is improving as the holiday season approaches. Inventory is reported to be decreasing, but not as heavily as usual due to strong churning schedules. Cream supplies are reported to be higher than last year. Many butter manufacturers are running at capacity and have not needed to purchase extra cream from the spot market.

Friday Closing Dairy Market Update - Butter and Cheese Prices Showed Limited Change from Last Week

OVERVIEW:

Milk futures posted a strong close in response to the increase in spot prices. Trading volume was large, with the November contract showing more than 1,380 contracts and the December contract showing more than 1,100 contracts. The September Cold Storage report was not released.

MILK:

Milk futures posted a strong close, with Class III futures showing substantial gains from a week ago. The gain in cheese prices was limited, but futures rose significantly. Class IV futures did not share the same sentiment as contracts posted limited gains. Fundamentals did not change much, leaving traders with only speculation as to the strength of the underlying cash. The September Cold Storage report was not released today as scheduled due to the government shutdown. It is uncertain whether the milk production or cold storage reports would be released if the shutdown is settled. Likely, the information will only be reported on the next scheduled report date in November. Cattle futures were down limit today and ended a very negative week. January feeder cattle fell $19.50, while December live cattle fell $7.90. This does not mean the value of calves will decrease anytime soon, but it is something to be aware of as the government intends to lower beef prices.

AVERAGE CLASS III PRICES:

3 Month:	$17.36
6 Month:	$17.13
9 Month:	$17.10
12 Month:	$17.20

CHEESE:

For the week, blocks increased 0.25 cent with 32 loads traded. The weekly average price was $1.7605. Barrels remained unchanged with one load traded. The weekly average price was $1.7655. Dry whey increased 4.25 cents with three loads traded. The weekly average price was 67.70 cents. Barrels are reported to be in tighter supply. However, that is confusing, as that should have resulted in a price increase. It may indicate the market is balanced.

BUTTER:

For the week, butter increased 0.75 cent with 66 loads traded. The weekly average price was $1.5740. Grade A nonfat dry milk increased by 5.00 cents with 38 loads traded. The weekly average price was $1.1260. The majority of those loads were traded today.

OUTSIDE MARKETS SUMMARY:

December corn closed down 4.75 cents per bushel at $4.2325, November soybeans closed down 3.00 cents at $10.4175 and December soybean meal closed up $1.80 per ton at $294.10. December Chicago wheat closed down .50 cent at $5.1250. December live cattle closed down $7.25 at $233.93. December crude oil is down $0.37 per barrel at $61.42. The Dow Jones Industrial Average is up 473 points at 47,207, with the NASDAQ is up 263 points at 23,205.

Friday Midday Dairy Market Summary - Spot Prices Jump

OUTSIDE MARKETS SUMMARY:

CORN:	4 Lower
SOYBEANS:	2 Lower
SOYBEAN MEAL:	$1.30 Higher
LIVE CATTLE:	$5.80 Lower
DOW JONES:	541 Points Higher
NASDAQ:	299 Points Higher
CRUDE OIL:	$0.06 Lower

MIDDAY MARKET UPDATE:

The block cheese price increased 5.25 cents, closing at $1.775 with seven loads traded. The barrel cheese price increased 1.50 cents to close at $1.77 with no loads traded. An unfilled bid and no offers were remaining at the close for blocks, and an unfilled bid and two uncovered offers for barrels. The dry whey price remained unchanged at 69.00 cents with no loads traded. Class III futures are steady to 44 cents higher. The butter price increased 4.00 cents, closing at $1.6025 with 15 loads traded. There were seven unfilled bids and two uncovered offers remaining at the close. Grade A nonfat dry milk increased 3.50 cents to close at $1.16 with 28 loads traded. The volume of loads for nonfat is unusual and indicates improving demand. Class IV futures are 16 to 37 cents higher. Butter futures are 2.52 to 7.50 cents higher, with December having the limit-up move. Dry whey futures are 0.55 to 4.50 cents higher. Cheese futures are 0.60 cent lower to 4.00 cents higher.

Friday Morning Dairy Market Update - Limited Cash Price Movement Expected

OPENING CALLS:

Class III Milk Futures:	5 to 15 Higher
Class IV Milk Futures:	4 to 8 Higher
Butter Futures:	Steady to 1 Higher

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	1 to 2 Lower
Soybean Futures:	1 to 2 Lower
Soybean Meal Futures:	Mixed
Wheat Futures:	Mixed

MILK:

Class III milk futures closed strong on Thursday with follow-through trade continuing overnight. It is uncertain whether traders are thinking cheese prices will turn higher or if the overnight activity was short covering. There was good volume overnight, which could indicate more than just short covering. Overall, not much is expected one way or the other for price movement. The September Cold Storage report was scheduled to be released today, but it will not be released due to the government shutdown.

CHEESE:

Cheese prices are expected to remain choppy as buyers and sellers take care of business in the cash market. The trading is narrowing as there is a balance in supply and demand. Increased cheese production is limiting the decrease in inventory, leaving the market with sufficient supply.

BUTTER:

The butter price could see further gains today if the unfilled bids that remained at the close of spot trading on Thursday are raised. However, the buyers may wait and hold their bids at lower prices, knowing that manufacturers will want to move supplies rather than build inventory. The price could fall to a new low again in the near term.

Thursday Closing Dairy Market Update - Milk Futures Close Higher But Lack Conviction

OVERVIEW:

Milk futures found more strength as the day progressed. More price volatility increased trading activity. The underlying cash showed little reason for long-term price direction.

MILK:

Class III futures showed double-digit gains in contracts through May. More price volatility in futures increased the desire of traders to take part during the day, as it allowed for more chances to scalp the market to take profit. Milk production has been generally steady this past week. Demand for milk for Class III production is lighter in the Central region, with some milk moving around to find a home. This may be temporary, as some plants have reported lighter production for maintenance reasons. Spot milk is running from $2.00 under class to $1.00 over class. Bottle demand remains strong. Class IV futures were higher in a few months, with most contracts remaining unchanged with no trading activity.

AVERAGE CLASS III PRICES:

3 Month:	$17.04
6 Month:	$16.77
9 Month:	$16.85
12 Month:	$17.03

CHEESE:

Barrel cheese has been moving in a narrow range. There has been a limited volume of loads traded over the past few weeks. Barrel cheese is reported to be in good demand, but production has been sufficient to keep demand satisfied. Blocks have been moving in a wider range with more activity and limited upside.

BUTTER:

The cream supply remains strong as milk components remain higher than a year ago and are increasing seasonally. Churns are receiving sufficient supplies from regular channels, reducing the need to purchase from the spot market. The September Cold Storage report is scheduled to be released on Friday, but it will not be due to the government shutdown.

OUTSIDE MARKETS SUMMARY:

December corn closed up 5.00 cents per bushel at $4.2800, November soybeans closed up 10.00 cents at $10.4475 and December soybean meal closed up $2.30 per ton at $292.30. December Chicago wheat closed up 9.25 cents at $5.1300. December live cattle closed up $1.35 at $241.18. December crude oil is up $3.26 per barrel at $61.76. The Dow Jones Industrial Average is up 144 points at 46,735, with the NASDAQ up 201 points at 22,942.

Thursday Midday Dairy Market Summary - Butter Shows Substantial Trading Volume

OUTSIDE MARKETS SUMMARY:

CORN:	2 Higher
SOYBEANS:	8 Higher
SOYBEAN MEAL:	$1.90 Higher
LIVE CATTLE:	$1.15 Higher
DOW JONES:	108 Points Higher
NASDAQ:	170 Points Higher
CRUDE OIL:	$3.40 Higher

MIDDAY MARKET UPDATE:

The block cheese price declined 1.50 cents, closing at $1.7250 with five loads traded. The barrel cheese price remained unchanged at $1.7550 with no loads traded. The dry whey price increased 2.00 cents, closing at 69.00 cents with one load traded. The increase in dry whey offset the decrease in blocks, resulting in Class III futures trading mostly higher. Contracts are 7 cents lower to 14 cents higher. The October contract shows the most pressure due to traders adjusting to the weekly AMS prices. The butter price increased 1.75 cents, closing at $1.5625 with 27 loads traded. There were 13 unfilled bids and two uncovered offers remaining at the close. Grade A nonfat dry milk increased 0.50 cent to close at $1.1250 with nine loads traded. Class IV futures have only traded in the March contract posting a gain of 5 cents. Butter futures are 0.35 cent lower to 3.05 cents higher. Dry whey futures are 0.50 to 4.00 cents higher. Cheese futures are 1.60 cents lower to 1.40 cents higher

Fluid Milk and Cream - Western U.S. Report 43

In the West, California milk production is stronger and fat components in milk output are increasing. Stakeholders report that spot milk loads are available. However, manufacturers convey there is not much open processing space, which is making it difficult to find homes for spot milk loads. 

In Arizona and New Mexico, farm level milk output is stronger. Processing capacities are tighter. 

Milk production in the Pacific Northwest varies from steady to stronger. Manufacturers convey that milk intakes are at anticipated volumes. Spot milk loads are available for buyers. Processing plants that came online this year continue to move closer to full capacity on milk volumes. 

Weekover-week farm level milk output in the mountain states of Idaho, Utah, and Colorado varies from steady to stronger. Stakeholders note milk volumes are more than sufficient and spot loads are available for buyers. All Class demands are unchanged throughout the region. 

Cream remains widely available in the West. Cream demand varies from steady to lighter. The bottom end of the All-Classes cream multiples range moved slightly higher. Condensed skim milk demand and availability are steady.

Thursday Morning Dairy Market Update - Spot Prices May See Further Pressure

OPENING CALLS:

Class III Milk Futures:	4 to 5 Higher
Class IV Milk Futures:	2 to 6 Lower
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	1 to 2 Higher
Soybean Futures:	4 to 6 Higher
Soybean Meal Futures:	$0.50 to $1 Lower
Wheat Futures:	1 to 2 Higher

MILK:

Milk futures are expected to remain choppy. The weakness in butter and cheese on Wednesday will leave trader's cautious over further decline. Milk production is increasing as cow comfort has improved, and feed quality is generally good. Even with milk futures showing low prices through next year, there are expansions still taking place. Milk replacement prices are high, but cow numbers continue to increase. Milk futures have seen volatility, but it has been limited.

CHEESE:

Spot cheese prices may see further weakness today as buyers do not see the need to be aggressive. There is sufficient cheese available to buyers, and manufacturers want to move supplies rather than build plant inventories.

BUTTER:

New lows for the year on Wednesday do not bode well for the price through the rest of the year. Manufacturing has increased with numerous plants running on full schedules due to the increasing cream supplies. There is a good amount of bulk butter in inventory, with manufacturers producing more retail-size packaging.

Wednesday Closing Dairy Market Update - Global Dairy Trade Auction Declines 1.4%

OVERVIEW:

Class III futures held up well despite the decline in cheese prices. Futures did not have much extra premium in the contracts and did not need to drop to keep in line with cash. The Global Dairy Trade auction trade-weighted average declined 1.4% from the previous event.

MILK:

The September Milk Production report was not released due to the government shutdown. The Global Dairy Trade auction trade-weighted average declined 1.4% from the previous event. This marks the fifth consecutive event posting a decline. The average price was $3,881 per metric ton with 40,621 metric tons sold. The Anhydrous milk fat price increased 1.5% to $7,038 per metric ton or $3.19 per pound. Butter decreased 0.8% to $6,662 per metric ton or $3.02 per pound. Cheddar cheese decreased 1.9% to $4,758 per metric ton or $2.16 per pound. Mozzarella decreased 5.3% to $3,230 per metric ton or $1.47 per pound. Skim milk powder decreased 1.6% to $2,559 per metric ton. Whole milk powder decreased 2.4% to $3,610 per metric ton or $1.64 per pound. Class IV futures continued under pressure while Class III contracts closed mixed. The weakness of spot prices did not provide support.

AVERAGE CLASS III PRICES:

3 Month:	$16.82
6 Month:	$16.57
9 Month:	$16.66
12 Month:	$16.88

CHEESE:

The price range for cheese is becoming narrower. It is unlikely prices will break out of the range anytime soon. Increasing cheese production may result in a lower decrease in inventory throughout the rest of the year. Export demand is reported to be strong, but that is not sufficient to support prices.

BUTTER:

The pressure resumed on the butter price today, with the price falling to a new low for the year. Buyers are not interested in purchasing aggressively to make sure they do not have to chase the market higher into the holiday season. There is no concern over supply, with buyers stepping up only when they need to fill immediate orders.

OUTSIDE MARKETS SUMMARY:

December corn closed up 3.25 cents per bushel at $4.2300, November soybeans closed up 4.00 cents at $10.3475 and December soybean meal closed up $3.10 per ton at $290.00. December Chicago wheat closed up 3.50 cents at $5.0375. December live cattle closed down $5.60 at $239.83. December crude oil is up $2.00 per barrel at $59.24. The Dow Jones Industrial Average is down 185 points at 46,590, with the NASDAQ down 213 points at 22,740.

Wednesday Midday Dairy Market Summary - Butter and Cheese Prices Fall

OUTSIDE MARKETS SUMMARY:

CORN:	3 Higher
SOYBEANS:	1 Higher
SOYBEAN MEAL:	$1.50 Higher
LIVE CATTLE:	$3.77 Lower
DOW JONES:	430 Points Lower
NASDAQ:	419 Points Lower
CRUDE OIL:	$1.22 Higher

MIDDAY MARKET UPDATE:

The block cheese price declined 2.50 cents, closing at $1.74 with two loads traded. The barrel cheese price declined 2.00 cents, closing at $1.7550 with no loads traded. The barrel market has been confusing, with the price fluctuating but little business being done. The dry whey price remained unchanged at 67.00 cents with no loads traded. Class III futures are ranging from 8 cents lower to 7 cents higher. The butter price declined 3.50 cents, closing at $1.5450 with six loads traded. Grade A nonfat dry milk increased 0.50 cent to close at $1.12 with no loads traded. Class IV futures have only traded in the April contract at 16 cents earlier in the day. Butter futures are 1.50 to 5.97 cents lower. Dry whey futures are 0.55 cent lower to 2.00 cents higher. Cheese futures are 0.90 cent lower to 1.30 cents higher.

Wednesday Morning Dairy Market Update - Spot Prices Remain Choppy

OPENING CALLS:

Class III Milk Futures:	4 to 8 Higher
Class IV Milk Futures:	Mixed
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	Steady to 1 Higher
Soybean Futures:	2 to 3 Higher
Soybean Meal Futures:	$1 to $2 Lower
Wheat Futures:	Mixed

MILK:

Class III milk futures in nearby contracts have rebounded and are trying to hold. Contracts for next year are struggling and maintaining the downtrend. Farms continue to hold cows and, in some cases, are expanding. The revenue from beef-on-dairy calves has been substantial and has changed the pattern of culling cows. A lower-producing cow that would usually be culled is now being retained due to it being paid for and producing calves. A high-value calf can make up for lower milk production. As long as calf prices remain high, this trend is not likely to change. The September Milk Production report will not be released today due to the government shutdown.

CHEESE:

Cheese prices are expected to continue to chop around. Blocks are expected to see further selling pressure as manufacturers need to move supplies and will try to take advantage of the recent increase in price. Barrel cheese continues to show limited activity, either from a tighter supply or lower demand. The upside price potential is limited.

BUTTER:

There is sufficient butter for demand, with increased butter production reducing the amount of butter moving out of storage to meet demand. Reports are that butterfat exports remain strong, but with the government shutdown, we have no official information as to the amount.