GENERAL OVERVIEW:
It was a day without much fanfare as milk futures closed mixed. The only excitement for the day and the week was nonfat dry milk, with a substantial increase in price for the week.
MILK:
Milk futures closed the day mixed. Class III futures closed lower for the week while Class IV futures increased substantially from the previous week. The large increase in nonfat dry milk provided support. The USMCA has always been a topic of discussion. Canadian dairy farmers are upset about the possibility of agricultural concessions to the U.S. to avoid the addition of tariffs on key industrial commodities. Here is a quote from Dow Jones Newswires on Thursday. "'Our national food sovereignty is not up for negotiation," said David Wiens, head of the influential Dairy Farmers of Canada. "It is imperative that no more concessions on dairy are made.' The Trump administration is set next week to impose 50% tariffs on certain Canadian goods in response to Canada's alleged mistreatment of U.S. dairy products, automobiles and alcohol. Canadian officials say they are unwilling to upend the country's supply-management system, whereby government agencies set dairy prices, enforce production quotas, and limit dairy imports. Canadian and US negotiators are in talks in Washington to avoid the imposition of new 50 percent duties." It will be interesting to see what transpires over the weekend.
AVERAGE CLASS III PRICES:
| 3 Month: | $17.11 |
| 6 Month: | $17.27 |
| 9 Month: | $17.33 |
| 12 Month: | $17.43 |
CHEESE:
For the week, block increased 4.50 cents with 14 loads traded. The weekly average price is $1.6050. Barrels increased 1.50 cents with one load traded. The weekly average price is $1.5535. Dry whey decreased 0.50 cent with two loads traded. The weekly average price is 68.95 cents. The increase in the block cheese price did not support Class III prices during the week.
BUTTER:
For the week, butter declined 5.25 cents with 121 loads traded. The weekly average price is $1.4755. Grade A nonfat dry milk jumped 16.75 cents with 32 loads traded. The weekly average price is $1.6570. The nonfat dry milk price moved to the highest price since June 15th.
OUTSIDE MARKETS SUMMARY:
December corn closed up 11.25 cents per bushel at $4.8325, November soybeans closed up 10.25 cents at $11.9250, and December soybean meal closed up $2.30 per ton at $316.30. September Chicago wheat closed up 22.00 cents at $6.7475. October live cattle closed down $1.18 at $218.88. September crude oil is up $1.15 per barrel at $82.40. The Dow Jones Industrial Average is down 108 points at 53,732, with the NASDAQ down 74 points at 26,729.
