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.
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