GENERAL OVERVIEW:
The brief strength in Class III futures was short-lived, with Wednesday's gains being eliminated today. Milk remains sufficient for both bottling and manufacturing. The World Agricultural Supply and Demand (WASDE) report will be released on Friday.
MILK:
Milk production is improving in most areas as cooler weather is improving cow comfort. The milk supply has been sufficient for bottling and manufacturing through the summer despite hot weather and has remained sufficient to supply demand from schools reopening for the year. It is interesting to see that spot milk prices for the week were $2.00 below class to flat class at this time of year. One reason for this is the holiday weekend and the greater availability of milk, as some plants had reduced production schedules. USDA will release the World Agricultural Supply and Demand (WASDE) report on Friday. The report will show expectations for grain production, ending stocks and estimated prices. The report will also contain the estimates for milk production, milk prices and dairy product prices for this year and next year.
AVERAGE CLASS III PRICES:
| 3 Month: | $16.22 |
| 6 Month: | $16.54 |
| 9 Month: | $16.82 |
| 12 Month: | $17.03 |
CHEESE:
Cheese demand varies depending on the variety. Cheeses used for pizza are seeing increased demand as the football season gets underway. Overall demand has been steady. Cheese production is slowly improving as milk supplies increase. The sufficient supply keeps prices from trending higher.
BUTTER:
The price moved below the previous low and is now back to the lowest level it has been since January 16. The low for the year has been $1.30 and may be a level that could be reached before support may develop. The strength in nonfat dry milk is supporting the Class IV price. The nonfat dry milk price has reached the highest level since June 9.
OUTSIDE MARKETS SUMMARY:
December corn closed up 6.00 cents per bushel at $5.3375, November soybeans closed up 22.75 cents at $13.3225 and December soybean meal closed up $5.50 per ton at $356.90. December Chicago wheat closed up 12.50 cents at $7.4125. October live cattle closed up $1.98 at $217.83. October crude oil is up $7.80 per barrel at $103.85. The Dow Jones Industrial Average is down 317 points at 52,064, with the NASDAQ down 172 points at 26,082.
