OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 7 to 9 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 3 to 5 Lower |
MILK:
Milk futures showed weakness following the substantial decline in cheese prices Wednesday. However, the weakness was only confined to nearby contracts and futures did not decline as much as would have been expected. Traders held some optimism that the weakness would be short-lived. However, the overnight trading activity showed further weakness with some traders having second thoughts. The milk supply has been sufficient for demand with spot prices increasing. Schools close for the Labor Day weekend will leave more milk available to the spot market.
CHEESE:
It is unclear whether the weakness of cheese prices on Wednesday will be extended Thursday. Buyers generally step back on price weakness as they wait to see how aggressive sellers will be. That may not be the case as buyers may be more aggressive on any price weakness. It is possible cheese prices could rebound into the end of the week.
BUTTER:
The butter price may move to the high set in 2022 in the near term as buyer interest should improve over the next weeks. Inventory is higher than a year ago, but increasing domestic and international demand may reduce inventory more rapidly than usual. Buyers may be more aggressive Thursday.
