OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 7 to 9 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | Steady to 2 Lower |
MILK:
Class III milk took a beating again Tuesday as cheese prices found no support. Milk production is sufficient for demand, but a limited supply of spot milk is available and what is available is priced above class. Manufacturers are relying on contracted supplies or patron milk, which still is sufficient to meet demand. This does not bode well for the rest of the year as generally manufacturing plants have more difficulty keeping up with demand as the industry prepares for the holiday season. Class IV futures fared better Tuesday as butter and nonfat dry milk price provided support.
CHEESE:
Barrel cheese price has fallen back to the lowest level it has been since July 19 and block cheese is at the lowest level since July 21. This is generally the time of year when buyers are more aggressive. However, current supply exceeds demand, resulting in cheese supply running above a year ago, according to the recently released cold storage report.
BUTTER:
Spot butter price was on fire Tuesday as price showed the largest one-day increase since Jan. 4, 2022. Buyers have been very aggressive in trying to outbid each other to increase ownership; they are having limited success as sellers are not offering much. There is concern again that once buyers are satisfied, there could be a void under the market. Prices generally fall faster than they increase.
