GENERAL OVERVIEW:
Class III futures closed unchanged to higher on moderate trading activity despite a slight decrease in the block cheese price. Class IV futures showed further weakness. August dairy exports were released, with total exports 3.0% above a year ago.
MILK:
It has been another dismal week for milk futures, even though Class III contracts closed unchanged to higher today. Class IV futures continued to decline, with November through March contracts below $14.00. Dairy exports were released for August, showing overall exports on a milk solids equivalent basis up 3.0% due to strong cheese and butterfat exports. This was a delayed report, but it finally provided information on what was taking place. This was the third consecutive month of increase, with year-to-date exports 2.2% above the same period a year ago. The year-to-date value of exports was 16% above the same period a year ago. However, the strong export pace has had little, if any, impact on domestic prices. Both block cheese and butter spot prices made new lows for the year this week. The dairy futures and options markets will be closed on Thursday and Friday, with futures trading opening at the usual time on Sunday night.
AVERAGE CLASS III PRICES:
| 3 Month: | $16.13 |
| 6 Month: | $15.95 |
| 9 Month: | $16.19 |
| 12 Month: | $16.50 |
CHEESE:
For the week, blocks declined by 8 cents with ninr loads traded. Barrels remained unchanged with no loads traded. This is the fourth consecutive week that barrels have not had any loads traded. Dry whey declined 2.75 cents with 11 loads traded. Cheese exports in August totaled 54,110 metric tons, up 28.1% from August 2024. Year-to-date exports are up 15.3%. Lactose exports totaled 34,904 metric tons, up 4.3% from a year ago, with year-to-date exports up 1.1%. Whey exports totaled 42,977 metric tons, up 0.5%, with year-to-date exports down 2.3%. Whey protein concentrate exports reached 8,556 metric tons, up 7.7%, with year-to-date exports up 10.4% compared to the same period last year.
BUTTER:
For the week, butter declined 2.75 cents with 19 loads traded. Grade A nonfat dry milk declined by 4.0 cents with 19 loads traded. Butterfat exports in August totaled 10,916 metric tons, up 192.4% above August 2024. Year-to-date exports are 156.9% above the same period in 2024. Nonfat dry milk/skim milk powder exports totaled 56,434 metric tons, down 17.6%, with year-to-date exports down 13.0%. Whole milk powder exports totaled 2,179 metric tons, down 18.8% from August 2024 but up 41.4% year-over-year.
OUTSIDE MARKETS SUMMARY:
March corn closed up 7.00 cents per bushel at $4.4525, January soybeans closed up 6.75 cents at $11.3150, and January soybean meal closed steady at $320.40. March Chicago wheat closed up 1.25 cents at $5.4050. February live cattle closed up $5.60 at $212.93. January crude oil is up $0.60 per barrel at $58.55. The Dow Jones Industrial Average is up 315 points at 47,427, with the NASDAQ up 189 points at 23,215.
