OVERVIEW:
Class III milk futures slid lower due to the continued weakness of block cheese. Traders had no reason to buy into the market to try to create volatility. Class IV futures made a weak effort to follow the butter price.
MILK:
There was not much going on today in the dairy or grain markets. The news between the U.S. and China continues to change. It was announced today that the meeting between President Trump and the Chinese leader Xi is on track for later this month. That was an about-face from Friday. Secretary Basset says the 100% tariffs do not have to happen. No one really knows what is going to take place from one day to the next. This news had no impact on the dairy markets as they are running on their own fundamentals rather than outside financial influence. Milk output is slowly improving and will continue to do so through the end of the year, unless there is an unforeseen event that takes place. Increasing milk production will translate into more dairy product production.
AVERAGE CLASS III PRICES:
| 3 Month: | $16.43 |
| 6 Month: | $16.44 |
| 9 Month: | $16.60 |
| 12 Month: | $16.78 |
CHEESE:
Any support that has recently developed in cheese has been eliminated. Buyers and sellers are doing business as they need. Much of the demand through the end of the year is either already on hand or is contracted. This reduces the volatility in the spot market as immediate orders provide short-term aggressiveness, but once those orders are met, buyer interest falls back.
BUTTER:
The increase in the butter price today may not indicate that a bottom has been reached. This has happened repeatedly this year, only to see the price make a new low. The time of year is not conducive to much upside price potential.
OUTSIDE MARKETS SUMMARY:
December corn closed down 2.25 cents per bushel at $4.1075, November soybeans closed up 1.00 cent at $10.0775 and December soybean meal closed down $.90 per ton at $274.10. December Chicago wheat closed down 1.75 cents at $4.9675. December live cattle closed up $2.23 at $244.75. November crude oil is up $0.71 per barrel at $59.61. The Dow Jones Industrial Average is up 588 points at 46,068, with the NASDAQ up 490 points at 22,695.
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