The October all-milk price announced on Wednesday afternoon of this week is the highest for any month of 2012 and could prove to be the highest for the entire year.
That all-milk price for October, a number which does not account for hauling costs or promotional fees, is an average of $21.10 per hundred for the United States. This is an increase from the $19.60 per hundred average for September.
In Wisconsin, the announced all-milk price for October is $22.40 per hundred on milk with an average of 3.81 percent butterfat.
This is an increase from the state's $20.80 per hundred price for September and is $2 per hundred more than the all-milk price in October 2011.
Among the top 23 milk production states, only a handful are anticipating a higher all-milk price for October.
They are Florida at $24 per hundred, Minnesota and Virginia at $22.90 each, and Oregon at $22.60. The October average all-milk price in California is $19.20 per hundred.
Those prices coincided with the year's highest spot market prices for Cheddar cheese on the Chicago Mercantile Exchange, which were posted last week.
With increases in all five of the week's trading sessions for both Cheddar blocks and barrels, the spot market closing prices on Friday of last week were $2.12 and $2.08 per pound, respectively.
That market softened a bit this week with Cheddar barrels losing a total of eight cents per pound during the first three trading days to close at $2 per pound on Wednesday.
Cheddar blocks lost one cent but their closing price of $2.11 per pound on Wednesday, represented one of the largest price spreads between blocks and barrels in recent months.
The AA butter spot market price changed on Wednesday of this week for the first time since Oct. 23, even though 18 carloads were sold in the spot market last week.
An unfilled bid to buy one carload on Wednesday of this week raised the price by .75-cent per pound to $1.8975. The spot market for non-fat dry milk continued to be inactive with prices standing at $1.56 per pound for both Grade A and Grade Extra.
Dry whey futures prices fell back slightly on Wednesday for most months through July 2013. Near the end of the day's trading session, those prices stood in the low 60s in cents per pound through January and in the 50s for all remaining months of 2013.
Class III milk futures prices were mixed on Wednesday of this week with changes of only a few cents per hundred for all months of 2013. The 10-cent per hundred increase for November 2012 was the largest monthly change on the trading board.
This put the November price at $21.07 per hundred, which would probably be a few cents higher than the Class III milk cash price for October that was yet to be announced.
The futures prices then tail off to $20.13 for December and into the $19s and $18s per hundred for all months of 2013.
In an announcement on Wednesday afternoon of this week, Cooperatives Working Together reported the acceptance of a package of 26 bids from Foremost Farms, Dairy Farmers of America, United Dairymen of Arizona, the Michigan Milk Producers Association, and the Maryland and Virginia Milk Producers Association.
These bids were for price assistance on the export of 4.295 million pounds of Cheddar, Gouda, and Monterey Jack cheeses, 2.499 million pounds of butter, and 85,890 pounds of whole milk powder to countries in South America, Asia, North Africa, and the Middle East. Deliveries are scheduled through April 2013.
Other reports within the past week indicated increases in the number of dairy cows sent to slaughter in 2012 compared to 2011. Those numbers included increases of 4,000 head in September, 9.4 percent for the May to September period, and 131,000 head for the year through the month of September.