OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 2 to 6 Lower |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 5 to 7 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 3 to 5 Higher |
MILK:
Class III milk futures continue to push higher as cheese prices show solid support. Buyers waiting for a dip in price are finding they need to purchase at higher prices. They turned aggressive, which moves spot prices higher. This may continue as buyers are looking ahead to fall and holiday demand. They do not like to see milk production continuing to run below a year ago. Cooler weather will improve cow comfort and feed intake, which may improve milk production. Lower cow numbers, lower-producing cows that have not been culled, and a tight heifer supply may limit the amount of milk production growth through the end of the year. Milk futures prices for later this year and early next year continue to improve.
CHEESE:
Steady cheese prices during spot trading were once viewed as negative to the market but are now viewed as supportive. Steady prices indicate the sellers are not willing to offer cheese lower, resulting in buyers having to step up to purchase supply rather than having the opportunity to buy on price weakness.
BUTTER:
The butter market seems balanced with buyers and sellers doing business without volatile price swings. Churning remains active, keeping sufficient butter available to the market. Price is expected to work higher this month as demand improves and previously contracted orders are filled. The past two days of price weakness are expected to uncover buying interest.
