GENERAL OVERVIEW:
Milk futures closed under pressure. The increase in the spot nonfat dry milk price was offset by the weakness in butter. The Global Dairy Trade auction trade-weighted average increased 2.3% from the previous event.
MILK:
Class III milk futures opened trading higher but fell back throughout the day as both block cheese and dry whey spot prices closed lower. Trading volume was moderate with trading activity confined to the 2026 contracts. Class IV futures were lower with trading confined to the September and October contracts. The fact that milk prices are not trending higher as a result of stronger spot prices is a concern. Buyers are seasonally more aggressive at this time of year as they look ahead to Fall and holiday demand. The Global Dairy Trade auction trade-weighted average price increased 2.3% from the previous event. There were 41,054 metric tons sold at the average price of $3,873 per metric ton. Anhydrous milk fat decreased 6.0% to $5993 per metric ton or $2.72 per pound. Butter decreased 2.0% to $5,090 per metric ton, or $2.31 per pound. Buttermilk powder decreased 3.5% to $4,552 per metric ton or $2.06 per pound. Cheddar cheese increased 0.6% to $3,744 per metric ton or $1.70 per pound. Lactose increased 3.2% to $1,807 per metric ton or $0.82 per pound. Mozzarella increased 6.1% to $4,234 per metric ton or $1.97 per pound. Skim milk powder increased 7.6% to $3,502 per metric ton or $1.59 per pound. Whole milk powder increased 3.0% to $3,591 per metric ton or $1.63 per pound.
AVERAGE CLASS III PRICES:
| 3 Month: | $17.00 |
| 6 Month: | $17.20 |
| 9 Month: | $17.30 |
| 12 Month: | $17.40 |
CHEESE:
Cheese production maintains a steady pace. More milk is moving to bottling for school accounts, but sufficient milk remains available for demand. Cooler weather in the Central region is improving cow comfort, resulting in increased milk output. Spot milk prices this week are running $1.00 below class to $3.00 above. Milk is available for manufacturing for those who need it.
BUTTER:
Butter is having difficulty finding support as manufacturers continue to offer supplies on the spot market. Even though export demand has been strong and domestic demand has been steady with signs of improvement, it has not been enough to tighten the supply and support prices.
OUTSIDE MARKETS SUMMARY:
December corn closed up 10.00 cents per bushel at $4.9800, November soybeans closed up 20.50 cents at $12.3725, and December soybean meal closed up $6.80 per ton at $325.60. December Chicago wheat closed up 16.25 cents at $6.9750. October live cattle closed down $1.70 at $217.23. September crude oil is up $0.89 per barrel at $85.83. The Dow Jones Industrial Average is up 120 points at 53,463, with the NASDAQ up 41 points at 26,331.
