OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 6 to 8 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 6 to 7 Lower |
MILK:
The November Class III milk contract suffered the greatest loss on Thursday due to block and barrel cheese prices declining. The greatest losses were seen in the November and December contracts. Holiday demand should support the market as buyers purchase to fill contracts and satisfy orders. Prices falling this rapidly and to the extent they have during this time of year is unusual. Milk production is at the seasonal low but will not rebound very quickly over the next few weeks. The heifer supply is tight, and expansions are put on hold. This will limit milk production growth for next year. The USDA will release the August Dairy Products report this afternoon.
CHEESE:
Spot cheese prices declined, moving blocks down near the $2.00 level. The barrel cheese price showed further weakness. Some had anticipated that the price action on Wednesday may have indicated a price bottom was reached. However, that was short-lived. The barrel price has plummeted by 50.25 cents in a little over two weeks.
BUTTER:
The butter price was stable today during spot trading. However, that does not mean much as there has been no indication of a price bottom. Butter production in August is expected to have been higher than the previous year. The price could bounce from here, but a sustained increase will be difficult to accomplish.
