OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 3 to 6 Lower |
| Soybean Meal Futures: | Steady to $1 Lower |
| Wheat Futures: | 2 to 4 Higher |
MILK:
Class III milk futures showed some nice strength Monday even though there was not a large movement of underlying cash. It certainly would be too early to tell if underlying cash prices will now begin to trend higher. Overall milk production is slowing but continues to remain higher than it was a year ago. Culling has been increasing, but cow numbers continue to remain significantly above year earlier levels. Milk production is slowly beginning to increase seasonally. The combination of these leaves little in the way of providing any real market direction other than what it has been doing for much of the year. Trading may be limited until spot trading shows direction.
CHEESE:
Cheese has a way to go before it can move out of the sideways trading range. Current cheese supply is sufficient for demand leaving buyers less aggressive. The increase of American cheese inventory in August may keep the upside potential for cheese prices limited unless demand increases significantly over the next month.
BUTTER:
Butter supply is declining seasonally, which should provide some support to the market. However, increasing cream supply will allow for increased churning activity keeping buyers satisfied without concern over supply. Price is expected to remain rangebound for the near term.
