OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 5 to 10 Lower |
| Butter Futures: | 1 to 2 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Higher |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | Steady to $1 Lower |
| Wheat Futures: | 5 to 7 Higher |
MILK:
Milk futures overnight provide little direction for prices today. The increase of cash cheese on Wednesday was met with skepticism while the decrease of butter put pressure on Class IV futures. Some positive news was that the House of Representatives passed the Whole Milk for Healthy Kids Act which restored the option for whole milk to be offered in school lunch programs. This now moves on to the Senate for a vote at some point. It seems strange that this is something that was eliminated in the first place by a congressional act and now needs to be reinstated by another congressional act. All types of milk should be offered in school lunch programs at any time to let the children decide which they would like to consume. This may not increase consumption overall and boost milk prices, but it will be better for the health of the students.
CHEESE:
Prices are expected to remain choppy. There is limited upside potential through the end of the year and likely limited downside as well. Buyers and sellers will take care of business as needed, limiting inventory growth if possible. However, cheese production is strong leaving sufficient supply for demand.
BUTTER:
It sure has been a wild ride over the past five months with butter moving to a record high and now dropping back to the level it had been in July. Further weakness is expected as we move through the end of the year with the price falling back to the trading range it has been in during the first half of the year.
