OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 4 to 8 Lower |
| Butter Futures: | 1 to 2 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 5 to 8 Lower |
| Soybean Meal Futures: | $2 to $4 Lower |
| Wheat Futures: | 1 to 3 Lower |
MILK:
Class III futures were mixed overnight with traders uncertain about the direction of underlying cash. Milk futures came under pressure on Wednesday due to the weakness of block cheese and butter. The positive aspect of the market is that Class III contracts in 2025 continue to hold well, with some setting new highs. Class IV futures could not hold up under the weakness of butter. It may be difficult for prices to rebound very much as a large part of the buying for the end-of-year is complete with fill-in buying to continue as orders need to be filled. Milk production is in a holding pattern with output at its seasonal low. Milk production may push above the level of a year ago if the current pattern is maintained. This would not oversupply the market and possibly maintain good prices into 2025. The September Federal Order class prices were announced showing the Class II price at $22.40, up $0.35 from August and $2.42 from a year earlier. The Class III price is $23.34, up $2.68 from August and up $4.95 from September 2023. The Class IV price is $22.29, up $0.71 from the previous month and up $3.20 from September 2023.
CHEESE:
Block cheese declined to its lowest level since August 13. Some anticipated the price finding a bottom earlier in the week. However, yesterday's weakness has traders wondering if the price could fall below $2.00. Demand has not increased to the level at which it is exceeding supply. The supply may not decrease much further compared to a year ago.
BUTTER:
The butter price fell to the lowest level since January 2024. This eliminates nearly the entire gains for the year. It will take some time to recover from the losses and the price will have a difficult time increasing. More cream will be available for churning as ice cream production slows.
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