OPENING CALLS:
| Class III Milk Futures: | 4 to 8 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 4 to 6 Higher |
| Soybean Futures: | 10 to 13 Higher |
| Soybean Meal Futures: | $3 to $4 Higher |
| Wheat Futures: | 8 to 10 Higher |
MILK:
The August Milk Production report was negative with milk production in the top 24 states up 0.1% from a year ago and U.S. milk production just 0.1% below. Milk output to remain that strong in August is impressive with milk production per cow showing a strong increase. This may indicate to dairy product buyers that there is no concern over a tighter milk supply through the end of the year. This may put further pressure on the barrel cheese price after reaching a record high last week. The increase in dairy cattle slaughter from July did not reduce cow numbers, but the decline in slaughter compared to a year ago shows that farms are holding on to cows due to the high replacement prices. Traders will be cautious ahead of spot trading.
CHEESE:
The weakness of cheese prices to close out the week may continue today as buyers hold back to see how aggressive sellers will be. Barrels may have a price void under the market as the strong buying interest of last week seems to have been satisfied.
BUTTER:
The butter price may have a difficult time moving above $3.00 as the aggressive buying to build stocks ahead of Fall demand and the holiday period may already have been accomplished. Inventory is higher than a year ago and churning is active. The market seems comfortable with the current supply.
