GENERAL OVERVIEW:
Milk production in the 24 major States was up 2.7% from September 2025 totaling 18.7 billion pounds. From last month, milk production fell 580 million pounds in the selected 24 States.
MILK:
While milk production was higher than last year, it did decline from last month as expected but the total milk production for the year is trending well above last year's totals. For 3rd quarter, milk production totaled 59,529 million pounds, up 2.3 percent from 2025. The number of milk cows on farms in the 24 major States was 9.30 million head, 162, 000 head more than last year and 24,000 head more than last month. Production per cow was also higher, averaging 2,012 pounds for September, 18 pounds higher than September 2025. USDA also released their Livestock Slaughter report today. For dairy cows, September slaughter totaled 234,800 head, this is up 13,700 head from last month and up 7,600 head from September of 2025. Dairy cows accounted for 10 percent of all cattle slaughtered from January to September under federal inspection. So far this year, the United States has slaughtered 2,021,700 dairy cows through the month of September.
AVERAGE CLASS III PRICES:
| 3 Month: | $16.73 |
| 6 Month: | $16.91 |
| 9 Month: | $17.06 |
| 12 Month: | $17.24 |
CHEESE:
Cheddar blocks had a small rebound of 2.25 cents today in the cash trade. It was the only product on the spot market to have a daily change in price. Cheese futures were mixed this afternoon trading anywhere from 0.1 cents lower to 2.6 cents higher. Traders expect the market to be quiet ahead of Friday's Cold Storage report.
BUTTER:
Butter was unchanged in the spot market earlier today with 24 loads traded. There were a lot of buyers and sellers participating in the butter trade today despite the flat price action. Futures were trading lower by last call today, from unchanged to down 1.8 cents. Much like cheese, butter is waiting for the Cold Storage report for more market direction.
OUTSIDE MARKETS SUMMARY:
December corn closed down 2.75 cents per bushel at $4.6050, November soybeans closed up 7.75 cents at $12.5300 and December soybean meal closed down $1.00 per ton at $347.30. December Chicago wheat closed down 3.50 cents at $6.2475.
December live cattle closed steady. December crude oil is up 1.90 per barrel at $99.05. The Dow Jones Industrial Average is up 11 points at 52,867 and the NASDAQ is down 694 points at 26,008.
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