OPENING CALLS:
| Class III Milk Futures: | 8 to 15 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 5 to 7 Lower |
| Soybean Meal Futures: | $2 to $4 Lower |
| Wheat Futures: | 1 to 2 Lower |
MILK:
Class III milk futures were under pressure overnight as the weakness continued. Buyers of cheese have not established a level at which they will step in more aggressively to obtain cheese for demand through the end of the year. Milk production is steady and has not yet begun to trend higher. Milk production per cow has improved significantly minimizing the decline in milk production due to lower cow numbers. The large spread between the closer months of Class III futures and later months has narrowed. Later contracts have not declined much from the weakness of cash as they already had a discount factored in.
CHEESE:
Barrels seem to be following a similar pattern as they did when the price increased rapidly. The market may be overdone to the downside and once the sellers have moved what they need to move, buyers may find a price void to the upside and will chase the market higher. There is potential for further weakness before that might take place. The decline of barrels on Friday found no willing buyers.
BUTTER:
The slightly higher butter price does not indicate a bottom was established in the market. The price has declined due to the increase in butter production as seen in the August Dairy Products report. The cream supply is sufficient with some reports of the supply being higher than usual for this time of year.
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