GENERAL OVERVIEW:
The November Class I base price was $20.27/cwt, up $1.39 from October and $3.52 from one year ago. The Base Skim Milk Price for Class I was $16.03/cwt, an increase of $1.91 from October and $5.41 higher than November 2025.
MILK:
Class III futures fell 61 cents on the November contract Wednesday while Class IV fell 33 to 37 cents. Nonfat Dry Milk was down the limit of 4 cents across all contracts. The weakness in cash prices brought a lot of selling pressure across all products. Class III had a difficult time overcoming the weakness in Cheddar Cheese blocks in spot trade, taking back a big portion of the rally from early this week. Blocks were down 9.75 cents, Nonfat Dry Milk was down 5.25 cents, indicating that follow-through selling is possible tomorrow in the futures trade. The market is still dealing with high supplies of milk despite the recent futures rally, so fundamentally, we were due for a setback.
AVERAGE CLASS III PRICES:
| 3 Month: | $16.62 |
| 6 Month: | $16.91 |
| 9 Month: | $17.11 |
| 12 Month: | $17.29 |
CHEESE:
Cheddar Blocks falling 9.75 cents is a big move in one day, however it is still well above the weekly average from last week. Barrels did not trade Wednesday but most likely would be feeling the pressure as well. The Cold Storage report on Friday will give a better indication of the current supply of cheese. While the spot market has been hot as of late, cheese appears to be readily available.
BUTTER:
Butter was not excluded from the spot market sell off Wednesday, closing down 3 cents. Futures were a bit more forgiving than the price action seen on other dairy products. The market closed mixed with November up 0.5 cents while the January contract was down 0.45 cents. The advanced butterfat pricing factor was $1.3730 per pound on today's report, down sharply from $1.5024 reported in October.
OUTSIDE MARKETS SUMMARY:
December corn closed up 1.25 cents per bushel at $4.6325, November soybeans closed down 3.00 cents at $12.4525 and December soybean meal closed down $.40 per ton at $348.30. December Chicago wheat closed down 15.00 cents at $6.2825.
December live cattle closed up $0.95 at $231.13. December crude oil is down .11 per barrel at $97.71. The Dow Jones Industrial Average is up 360 points at 52,856 and NASDAQ is up 278 points at 26,702.
