GENERAL OVERVIEW:
Milk futures closed with mostly double-digit gains. Class III futures closed mostly higher despite weakness in the block cheese market. However, futures closed lower for the week. Class IV futures closed significantly higher for the week.
MILK:
Class III futures through the end of the year closed lower for the week, maintaining the bearish tone. The block cheese price declined during the second half of the week. The price fell to the lowest level since July 6. The price has declined 12.75 cents since August 13th, keeping the market in a downtrend. The real excitement stemmed from the continued strength in nonfat dry milk, pushing Class IV futures significantly higher for the week. The September through December contracts are above $19.00, where they have not been since early May.
AVERAGE CLASS III PRICES:
| 3 Month: | $16.76 |
| 6 Month: | $17.08 |
| 9 Month: | $17.20 |
| 12 Month: | $17.32 |
CHEESE:
For the week, blocks decreased 4.50 cents with 38 loads traded. The weekly average price is $1.5085. Barrels were unchanged from the close of the previous week with no loads traded. The weekly average price is $1.5730. Dry whey increased 3.50 cents with one load traded. The weekly average price is 72.05 cents.
BUTTER:
For the week, butter was unchanged with 93 loads traded. The weekly average price is $1.4625. Grade A nonfat dry milk increased 6.50 cents with 16 loads traded. The weekly average price is $1.8265. The nonfat dry milk price has increased 46.50 cents since the low on July 27.
OUTSIDE MARKETS SUMMARY:
December corn closed up 3.00 cents per bushel at $5.3650, November soybeans closed up 20.00 cents at $12.8800, and December soybean meal closed up $8.00 per ton at $348.90. December Chicago wheat closed up 23.25 cents at $7.8400. October live cattle closed down $1.20 at $211.73. October crude oil is down $0.18 per barrel at $83.35. The Dow Jones Industrial Average is down 28 points at 53,560, with the NASDAQ down 139 points at 26,402.
