OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Higher |
| Soybean Futures: | 5 to 7 Higher |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | Mixed |
MILK:
Milk futures may have a difficult time recovering from the recent losses. Underlying cash prices are not rebounding as hoped with buyers of cheese unaggressive with purchases. Milk production in September was higher than expected with August higher than expected after the USDA released the revision and adjusted production up 0.5%. This should have already been in the market, but traders reacted negatively. Buyers of cheese and butter have not reacted to the report but continue to take care of business as they see fit. The increased reports of bird flu primarily in California have not had much impact on the market. It has not caused concern over supply for now. The milk production report was bearish while the cold storage report to be released on Friday might be bullish and reverse some of the negativity in the market.
CHEESE:
Cheese prices may have difficulty moving much above $2.00 unless demand improves. Overall restaurant traffic has decreased slightly, having some impact on dairy product demand. Cheese exports remain strong with August exports up 14.8% over August 2023. Cheese exports for the first eight months of the year are 21.6% above the same period last year.
BUTTER:
The butter price is expected to chop around in a range with buyer interest being satisfied as sellers continue to offer loads to the market. Churning is active providing sufficient supply of fresh butter to meet demand while limiting the amount of inventory required to meet that demand.
