OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Higher |
| Soybean Futures: | 10 to 15 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 8 to 12 Higher |
MILK:
There is certainly hope that that milk futures will find a bottom and retrace in price to some extent. The decline has nearly been relentless as underlying cash has provided no solid support. The path of least resistance has been down with the October and November Class III contracts holding on to the $18.00 level. Plentiful milk supply is keeping manufacturers busy and the market supplied. This eliminates any concern over supply to satisfy demand. Hot weather in the Northwest will impact milk production from that region, but that will have limited impact on overall production. The weather pattern that has been producing rains throughout much of the Corn Belt has impacted gain futures significantly, which has reduced feed prices. Crop conditions later Monday are expected to show an improvement over the past week, keeping pressure on grain prices.
CHEESE:
Cheese continues to come to the spot market, leaving buyers purchasing on an as-needed basis. Some is being purchased for inventory for upcoming demand and to build aging programs. Buyers have not had to be aggressive as they see no need to chase the market. Demand will need to increase substantially more than it is, or milk production will need to decline in order to move prices significantly higher.
BUTTER:
Price is having a difficult time finding support now that it has moved out of the range it had been in for a period of time. However, price is not falling apart due to strong domestic and international demand. Current production is meeting demand and then some as inventory is still increasing and remains higher than a year ago. Price will remain choppy.
