OPENING CALLS:
| Class III Milk Futures: | 4 to 8 Lower |
| Class IV Milk Futures: | 5 to 10 Lower |
| Butter Futures: | 1 to 2 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Lower |
| Soybean Futures: | 8 to 10 Lower |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | 1 to 3 Lower |
MILK:
Milk futures suffered substantial losses on Tuesday as spot prices showed further weakness. The negativity carried through overnight and may dominate trading activity ahead of spot trading. The market is not a wash in milk but has sufficient for demand. The potential for stronger-than-expected milk production through the end of the year has changed the attitude of traders. There is little concern over a shortage. Cooler weather will improve cow comfort which may increase production per cow. Grain harvest is underway, with a large crop expected, which should help keep feed prices reasonable.
CHEESE:
The lack of buying barrels on the spot market is a cause for concern. Bids not being posted provides no indication as to the level where buyers may be interested in purchasing. The USDA will release the August Cold Storage report on Thursday, showing the amount of cheese in inventory and what may be expected through the end of the year.
BUTTER:
It has been surprising how much the butter price has declined. There may be further downside potential as buyers have shown little interest in purchasing supply. Churning is active and inventory is higher. Increasing demand is easily met with fresh and supply inventory.
