Cash cheese regained what it lost just over a week ago on the Chicago Mercantile Exchange, blocks close the week at $1.50 and barrels end up at a yearly-high $1.4925. Class III futures for October and November have not quite regained what they lost but the remaining contracts have more than recovered their losses.
Commodity Credit Corporation did purchase 132,276 pounds of nonfat dry milk for the week but the purchase was apparently to test out some new packaging equipment. Powder supplies are tight and everyone is kind of waiting to see what will happen when that three-month interim support price ends on October 31st.
USDA reports 236,000 dairy cows went to slaughter in September that is 3,000 less than went to market in August but 16,000 more than in September of last year. Year-to-date, 2.14 million dairy cows have been culled compared to 1.9 million for the first nine months of last year, a 12.5 percent increase.
The Class I base price for November milk will be $12.86 per cwt, up 51 cents from October and $2.82 above August.
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