GENERAL OVERVIEW:
Dry whey jumped 2.5 cents in the cash market Tuesday morning, making an all-time record high of 88.5 cents. Class III jumped 47 cents on the November contract.
MILK:
Class III futures are having a big day with the deferred months rallying from strength in the dry whey and cheese markets. The October contract is only up 7 cents on the day and the November is up 47 cents this afternoon. Dry whey futures did not show nearly as much excitement from spot trade setting a new record-high price. They are trading steady to 0.20 cents higher. Class IV futures had limited trading Tuesday. November Class IV futures fell 42 cents on weakness in nonfat dry milk (NFDM). NFDM futures were 1.45 to 8 cents lower on the day. Cash fell 1 cent to close at $2.26.
AVERAGE CLASS III PRICES:
| 3 Month: | $16.18 |
| 6 Month: | $16.78 |
| 9 Month: | $17.04 |
| 12 Month: | $17.24 |
CHEESE:
Cheese futures are 0.7 to 4.2 cents higher this afternoon. Cheddar blocks had a big day, rallying 5.25 cents while barrels were unchanged yet again. Cheese makers currently note strong interest in mozzarella and provolone. There have been multiple reports lately on the problems that high freight cost is causing with the increase in diesel prices. Buyers still seem OK with standing in and buying at these levels.
BUTTER:
Butter futures had a great day, trading anywhere from 4 to 5.25 cents higher on the day. The October contract did not trade. Butter demand domestically has been the strongest in the East and light in the West. Manufacturers have not been consistent with partaking in spot market loads. Some believe this is a great opportunity to take advantage of low prices ahead of holiday demand while others see the availability of cream and are avoiding the spot market. Eight-two percent butterfat butter is a bit tighter than 80%, yet product is available for both products.
OUTSIDE MARKETS SUMMARY:
December corn closed down .25 cent per bushel at $4.8275, November soybeans closed down 4.00 cents at $12.8375 and December soybean meal closed down $5.50 per ton at $363.20. December Chicago wheat closed down 3.00 cents at $6.6925.
December live cattle closed down $0.23 at $226.38. November crude oil is up 1.15 per barrel at $94.89. The Dow Jones Industrial Average is down 180 points at 51,670 and NASDAQ is down 41 points at 27,204.
