GENERAL OVERVIEW:
The Global Dairy Trade auction took place today with the GDT Price Index up 3.0% from the October 20 auction. The average winning price was $4,166 with the biggest gains seen in Cheddar, Mozzarella and Whole Milk Powder.
MILK:
Class III futures ended the day lower with afternoon trade down 7 to 15 cents lower. Class IV had limited trading activity however the December contract was trading 10 cents higher near the close. The GDT auction took place Tuesday morning with the index pricing higher for the third auction in a row. There were 166 participating bidders and 39,806 MT were sold. The average price was up 3%. Anhydrous Milk Fat was down 3.2%, Lactose was up 3.3%, Skim Milk Powder was 3.1% higher and Whole Milk Powder was up 5.9%.
AVERAGE CLASS III PRICES:
| 3 Month: | $16.66 |
| 6 Month: | $16.82 |
| 9 Month: | $16.98 |
| 12 Month: | $17.18 |
CHEESE:
Cheese futures traded on both sides of the market Tuesday with some early morning gains, midday trading lower and nearly back even by closing calls. The market was 0.8 to 1.5 cents lower at settlement. In the GDT auction, cheese prices were some of the biggest leaders in price increases from the October 20 auction. Cheddar had the highest gains of 8.6%, trading at $3,970. Mozzarella increased 5.8% at $4,104.
BUTTER:
Butter futures were trading 0.5 to 3.8 cents lower Tuesday afternoon after a disappointing day in the spot market with cash prices down 3.5 cents. In the GDT auction, butter was down 4.7% at $4,503 and Buttermilk Powder was down 4.4% at $4,312.
OUTSIDE MARKETS SUMMARY:
December corn closed down 5.75 cents per bushel at $4.4250, January soybeans closed down 2.75 cents at $12.1400 and December soybean meal closed down $1.60 per ton at $318.00. December Chicago wheat closed down 6.75 cents at $5.9975.
December live cattle closed down $1.55 at $218.15. December crude oil is down .37 per barrel at $96.09. The Dow Jones Industrial Average is down 197 points at 51,786 and the NASDAQ is up 207 points at 25,372.
