OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Steady to 8 Lower |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 4 to 7 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 5 to 7 Higher |
MILK:
Milk futures continue to make new lows as underlying cash just cannot seem to turn the corner and trend higher. Milk production has been able to remain strong and above year earlier levels through the summer, even in the midst of adverse weather. The desire is to produce milk and lower milk prices and higher feed costs have not impacted that desire for the most part. We are in the business for the long haul and price fluctuations are a part of the business. The longer-term impact of high feed prices may result in higher milk prices over time, but that will depend on whether feed prices remain that way or if there will be sufficient feed in the end, leaving prices near current levels.
CHEESE:
Cheese prices should be low enough to get the interest of buyers to begin to look at purchasing for upcoming demand through the rest of the year. However, with current strong production schedules and readily available supplies, buyers may remain content to purchase on an as-needed basis.
BUTTER:
Butter output is strong and has been able to meet demand as well as build inventory. Inventory generally declines during the second half of the year, but stocks are plentiful to meet any demand that current production is unable to fill. Some plants are selling some cream rather than churning in order to try to limit inventory growth and balance supply with demand. Spot price is expected to remain choppy.
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