OVERVIEW:
There was a little more volatility in Class III futures today due to the rebound in the block cheese price. Traders remain cautious as price increases have been short-lived. A FARM SAFE Act has been introduced to make sure farm relief payments continue during government shutdowns.
MILK:
Class III milk futures closed mostly higher as a result of the rebound of the block cheese price. However, the rebound has been guarded as traders remain cautious over the potential for consistent strength. With the volatility, some traders were able to scalp some profit from the market even though trading activity was rather light. The Federal Agricultural Relief Maintained during Shutdowns and Federal Emergencies (FARM SAFE) Act has been introduced to maintain the administration of disaster assistance programs during government shutdowns. Government employees who are responsible for administering assistance programs would remain on the job during a government shutdown. It would also shield those essential employees from mass terminations known as reductions in force. It is unknown what the timeframe would be for this to be acted on. It certainly will not help in the current shutdown.
AVERAGE CLASS III PRICES:
| 3 Month: | $16.60 |
| 6 Month: | $16.56 |
| 9 Month: | $16.68 |
| 12 Month: | $16.87 |
CHEESE:
Cheese prices remain in a range, and the potential is that it will remain that way for a while. When the cheese price trends higher for a period of time, it reaches a plateau where buyers are not interested in bidding higher for the product, as they know there is sufficient available. Once immediate buying needs are met, buyers step back, and the price falls. This will be the pattern throughout the rest of the year.
BUTTER:
The butter price has not been in a pattern, with the price falling since early July. There was a brief time two weeks ago when it seemed the market found support, but that was short-lived. The market is at risk of falling to new lows for the year as the fundamentals are not very supportive.
OUTSIDE MARKETS SUMMARY:
December corn closed up 2.25 cents per bushel at $4.1300, November soybeans closed down 1.25 cents at $10.0650 and December soybean meal closed up $.20 per ton at $274.30. December Chicago wheat closed up 3.50 cents at $5.0025. December live cattle closed up $1.75 at $246.50. November crude oil is down $0.91 per barrel at $58.58. The Dow Jones Industrial Average is up 203 points at 46,270, with the NASDAQ down 173 points at 22,522.
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