OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 5 to 7 Lower |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 6 to 8 Lower |
MILK:
There has been no fundamental change in the market, leaving trading activity confined to the movement of spot prices. Spot prices have been confined to trading ranges, leaving traders guessing what prices may do. Much of the trading activity is confined to short-term activity as traders look to scalp the market for some profit rather than take a long-term position. Milk production continues to decline as weather impacts cow comfort. However, there is sufficient milk for bottling and manufacturing. More milk is moving to deficit areas as schools reopen over the next few weeks. The USDA will release the World Agricultural Supply and Demand report Monday and will show their estimates for milk production, milk prices, and dairy product prices for this year and next.
CHEESE:
Block cheese price is testing the top end of the range while barrels are above $2.00. Cheese demand is variable with some reports of slowing from the food service industry. Demand should increase seasonally as buyers look ahead to fall and holiday demand. Buyers may be more aggressive later this month as cheese is purchased for recutting and packaging for holiday needs.
BUTTER:
Supply and demand are balanced with buyers and sellers comfortable at the current price level. The current butter price is 43 cents above a year ago with strong buyers beginning in September last year. That pattern may not be the same this year but higher butter prices are expected over the next two months.
