GENERAL OVERVIEW:
With a rough start to the day with most markets trading lower over the evening hours to mixed trade by midday, the dairy market ended the day higher on nearly every commodity outside of Dry Whey.
MILK:
Class III futures ended the day with gains of 8 to 18 cents, coming slightly off of the highs but still a respectable close. Class IV had limited trading today with the December contract up 13 cents from a trade earlier in the day. NDM ended the day with futures gaining 1.5 to 2.05 cents, bouncing off the lows after some limit lower moves late last week. Dry Whey was the only product to trade lower this afternoon with losses of 0.3 to 0.5 cent. The spot market was unchanged for both dry products. Protein demand is still high so fundamentally not much has changed.
AVERAGE CLASS III PRICES:
| 3 Month: | $16.71 |
| 6 Month: | $16.75 |
| 9 Month: | $16.88 |
| 12 Month: | $17.09 |
CHEESE:
Cheese is battling with high production and big stocks. While seasonal demand has helped the spot market and nearby demand, overall, the amount of cheese being produced and in inventories are still well above levels from last year. Cheese production and inventory is down from last month, so while we prepare for holidays, there could be additional price inflation in the near term.
BUTTER:
Butter traded 0.6 to 2.2 cents higher this afternoon after the spot market traded 1 cent higher. There is still plenty of inventory, although much like cheese, as we head closer to the holiday season, the spot market may find some volatility as buyers try to boost inventory levels ahead of the baking season. Butter inventories are 16% higher than last year at this time, much higher than the increase in production year over year.
OUTSIDE MARKETS SUMMARY:
December corn closed down 6.25 cents per bushel at $4.4875, November soybeans closed down 12.00 cents at $12.2925 and December soybean meal closed down $5.60 per ton at $334.60. December Chicago wheat closed down 5.75 cents at $6.1025.
December live cattle closed down $0.35 at $230.85. December crude oil is down 1.86 per barrel at $99.90. The Dow Jones Industrial Average is up 15 points at 52,377 and the NASDAQ is up 308 points at 26,477.
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