Tuesday Closing Dairy Market Update - Butter Cash Price Sets New Low

OVERVIEW:

Butter cash price sets a new low, reaching prices last seen in early December of 2021. Milk and Cheese also drift lower as we kick off September with a short holiday week.

MILK:

Class III milk futures are currently trading 11 to 22 cents lower this afternoon after attempting to find support earlier in the day. Class IV milk struggled as well with butter prices making new lows. The Global Dairy Trade Price Index was down 4.3% on average, with drops in whole milk powder, skim milk powder, butter and mozzarella.

AVERAGE CLASS III PRICES:

3 Month:	$17.74
6 Month:	$17.67
9 Month:	$17.64
12 Month:	$17.65

CHEESE:

Cheese futures are 1.3 to 2.3 cents lower, unsurprisingly, after cheese blocks fell 1 cent in the cash trade today. Supply is plentiful and demand steady, so no new news to drive prices higher.

BUTTER:

Butter futures took another hit lower today after a disappointing 3.25-cent lower cash trade today, reaching new lows last seen on Dec. 3, 2021. With world supply in excess and a faltering world demand, we look domestically at a small reduction in butter in storage, wondering if there is hope for a bounce as we approach fall.

OUTSIDE MARKETS SUMMARY:

December corn closed 2.75 cents per bushel higher at $4.23, November soybeans closed down 13.75 cents at $10.41 and December soybean meal closed 5.2 cents per ton lower at $283.80. December Chicago wheat closed down 6 cents at $5.2825. October live cattle closed $0.125 lower at $239.525. October crude oil is up $1.53 per barrel at $65.53. The Dow Jones Industrial Average is off by 449 points at 45,295, with the NASDAQ down 175 points at 21,279.

Tuesday Midday Dairy Market Summary - Slow Start to September

OUTSIDE MARKETS SUMMARY:

CORN:	1 Lower
SOYBEANS:	15 Lower
SOYBEAN MEAL:	$0.53 Lower
LIVE CATTLE:	$0.65 Higher
DOW JONES:	426 Points Lower
NASDAQ:	325 Points Lower
CRUDE OIL:	$1.52 Higher

MIDDAY MARKET UPDATE:

The block cheese price was 1 cent lower at $1.7650 with 13 loads traded, one unfulfilled bid and two offers at the spot settlement. The barrel cheese price remained steady at $1.78 with no loads traded. There were two offers unfulfilled at the close. The dry whey price remained unchanged at 57 cents with no loads traded and only three offers. Class III futures are 10 to 17 cents lower. The butter price was 3.25 cents lower, closing at $2.0125 with one load traded, once again making new lows not seen since 2021. There were three remaining bids and seven offers left at the close. Grade A nonfat remained unchanged, closing at $1.26 with no loads traded and four offers were left standing. Class IV futures have low volume, with mixed trade. Butter futures are 1.75 to 5.9 cents lower. Dry whey futures are mixed from 0.5 cents higher to 1.450 cents lower.

Tuesday Morning Dairy Market Update - Will Butter Continue to Fall?

 OPENING CALLS:

Class III Milk Futures:	5 to 20 lower
Class IV Milk Futures:	Steady to 10 Higher
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	Steady to 2 Lower
Soybean Futures:	5 to 10 Lower
Soybean Meal Futures:	30 to 40 Lower
Wheat Futures:	5 to 10 Lower

MILK:

Class III milk closed last week with no clear direction, while Class IV was hit hard with the weakness in butter. Overnight markets are showing small gains in Class IV while Class III is kicking off the short week lower.

CHEESE:

Cheese showed nice gains in the cash market last week although there is concern in the lack of interest in barrels. Dry whey has not yet traded on the overnight markets but had some small wins last week in the cash market.

BUTTER:

Overnight markets are mixed in the butter market. Hopefully stopping some of the bleeding from last week's significant fall of over 19 cents and placing a new low price -- the lowest seen in nearly four years.