OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 5 Higher |
| Soybean Futures: | 2 to 4 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 8 to 10 Higher |
MILK:
The price swings in milk futures over the past few days have not been for the faint of heart. That is expected to continue as we move through September when demand improves. Milk production may not trend higher anytime soon as the extended weather forecast is for above-normal temperatures. This may limit milk production growth from the standpoint of cow comfort. Milk production may also be limited due to lower cow numbers. The tight heifer supply is expected to limit the increase in cow numbers and milk production. Spot milk prices are expected to increase as supply tightens. Milk will continue to move to deficit areas limiting the amount of milk available for processing.
CHEESE:
The divergence of cheese prices on Thursday leaves traders in a quandary. It will be interesting to see if the decline of blocks will increase buying interest or if sellers will take advantage of the higher barrel price. The recent pattern suggests buyers may want to take advantage of the lower block price to increase ownership.
BUTTER:
The weakness of butter was a surprise. This should increase the interest of buyers. The price decline could indicate the market has found buyer resistance and may remain in a range for the next month. Inventory is sufficient to fill in for any shortfall in production.
