GENERAL OVERVIEW:
The week closed with little fanfare. Class III futures were mixed, with Class IV futures showing no trading activity the entire day. There was little change during the week for spot prices. Butter and nonfat dry milk trading volume was substantial.
MILK:
Class III futures closed lower for the week, with block cheese showing a minor loss. Class IV futures were higher for the week with little direction from spot prices. This may be the market pattern in the near term. There has been little change in the overall fundamentals with the exception that milk production has regained some of the losses experienced from hot weather. Current milk output remains higher than a year ago, keeping sufficient milk supplies available for bottling and manufacturing. Class IV futures prices are back above Class III prices this week as the recent strength on nonfat dry milk over the past two weeks has increased the price potential for Class IV milk relative to Class III.
AVERAGE CLASS III PRICES:
| 3 Month: | $17.12 |
| 6 Month: | $17.34 |
| 9 Month: | $17.39 |
| 12 Month: | $17.46 |
CHEESE:
For the week, blocks declined 1.75 cents with 23 loads traded. The weekly average price is $1.5460. Barrels were unchanged with no loads traded. The weekly average price is $1.5475. Dry whey increased 0.25 cent with two loads traded. The weekly average price is 69.20 cents. The block price fell to the lowest level since July 8 during the week before recovering. The best we may hope for is a sideways trading pattern in the near term.
BUTTER:
For the week, butter declined 0.25 cent with 94 loads traded. Most of the loads were traded on Thursday. The weekly average price is $1.5030. Grade A nonfat dry milk increased 1.75 cents with 41 loads traded. The weekly average price is $1.5675.
OUTSIDE MARKETS SUMMARY:
December corn closed steady at $4.6200, November soybeans closed down 1.50 cents at $11.7625, and December soybean meal closed down $3.20 per ton at $313.40. September Chicago wheat closed up 8.50 cents at $6.3975. October live cattle closed up $0.35 at $225.28. September crude oil is down $0.16 per barrel at $77.13. The Dow Jones Industrial Average is up 152 points at 54,037, with the NASDAQ up 342 points at 26,691.
