OVERVIEW:
Class III futures closed on a negative note with some contracts posting double-digit losses. The August Dairy Products report was not released today due to the government shutdown.
MILK:
Class III futures did not follow the underlying cash. Futures eliminated the gains of the past two days. The weakness may have been due to no unfilled bids remaining in spot cheese after the trading period ended. Traders may be concerned that buyers may not want to push prices higher than the current level. Stronger milk production and lower feed prices should keep the milk supply sufficient for demand. Hopefully, prices will retain support and not revisit the lows. Class III futures continue to hold a limited premium throughout most of next year. USDA was scheduled to release the August Dairy Products report today, but it was not released due to the government shutdown.
AVERAGE CLASS III PRICES:
| 3 Month: | $17.08 |
| 6 Month: | $17.03 |
| 9 Month: | $17.06 |
| 12 Month: | $17.16 |
CHEESE:
For the week, blocks jumped 16.50 cents with 32 loads traded. The weekly average price was $1.7410. Barrels jumped 14.75 cents with two loads traded. One load was traded on Thursday and one today. The weekly average price was $1.71. Dry whey declined 1.75 cents with one load traded. The weekly average price was 64.10 cents. Cheese is showing the largest increase since the beginning of August. It has remained in a wide trading range since October 2024.
BUTTER:
For the week, butter increased 3.00 cents with 58 loads traded. The weekly average price was $1.7390. Grade A nonfat dry milk increased 0.50 cent with 27 loads traded. The weekly average price was $1.1580. The price seems to be developing a sideways trading range.
OUTSIDE MARKETS SUMMARY:
December corn closed down 2.75 cents per bushel at $4.1900, November soybeans closed down 5.75 cents at $10.1800 and December soybean meal closed down $.70 per ton at $278.60. December Chicago wheat closed up .50 cent at $5.1525. December live cattle closed up $1.03 at $234.50. November crude oil is up $0.26 per barrel at $60.74. The Dow Jones Industrial Average is up 239 points at 46,758, with the NASDAQ down 64 points at 22,781.
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