OPENING CALLS:
| Class III Milk Futures: | 2 to 10 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 3 to 4 Higher |
MILK:
The slight pressure on Class III futures yesterday even though cheese prices again declined was likely the market holding to get in line with cash. Or it could be that traders believe the lows may be near and they wanted to begin establishing some long positions ahead of some strength. It has been a difficult week as pressure has pushed November and December Class III futures to new lows. Milk production is steady at seasonally low levels, but supply remains sufficient for demand. Class IV futures were under pressure yesterday even though butter and nonfat dry milk prices increased. Futures adjusted to underlying cash as they had moved higher than they needed to in previous days. USDA will release the August Agricultural Prices report this afternoon providing some of the prices used in the calculation of the Dairy Margin Coverage program. The soybean meal average price release may be a concern if the government shuts down, as usually the FSA does not release the average soybean meal price until the following day which would be Monday. Maybe they will release it late today to get ahead of that possibility. The Quarterly Grain Stocks report will also be released this morning.
CHEESE:
Cheese just keeps being offered to the spot market as sellers want to move supply. Offers are posted at the beginning with lower bids. Buyers have just waited for sellers to lower prices and sellers are willing to do that keeping pressure on the market. Plants are moving cheese to keep inventory from building.
BUTTER:
One would not think butter has much more upside potential, but no one thought price would move to record highs. An unfilled bid yesterday could mean that the buyer might want to purchase a load at whatever the cost resulting in further strength. The strength of butter has been incredible after there had been a long period of steady price earlier in the year.
