OPENING CALLS:
| Class III Milk Futures: | 5 to 12 Lower |
| Class IV Milk Futures: | 4 to 8 Lower |
| Butter Futures: | 1 to 2 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 1 Lower |
| Soybean Futures: | 4 to 7 Lower |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | 2 to 4 Higher |
MILK:
Overnight trade indicates further pressure may take place on milk futures ahead of spot trading. That may change as more trading takes place this morning. Any indication of increased buying interest in the spot market may trigger aggressive buying of milk futures. After all, the market will not go down forever. Higher-than-normal temperatures will continue to impact the Southwestern region of the country impacting the increase in milk production. Other areas of the country are seeing milder weather improving cow comfort. Milk production should remain at lower levels for a few weeks before seeing increased growth.
CHEESE:
The barrel cheese price has not had any buying interest since the record high 1 1/2 weeks ago. The price has fallen 32.50 cents with no buyer interest. That may surface this week as buyers may take advantage of the lower price to increase ownership of supply for upcoming demand. Buyers of blocks have been purchasing as the price declined but have yet to support the market.
BUTTER:
Butter prices have declined more than cheese over the past month eliminating much of the gain for the year. Butter inventory declined significantly in August but remained 11% above a year ago. Butter production is increasing as cream supplies are more available than during the summer. Buyers continue to purchase as the price declines.
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