OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 4 to 5 Higher |
| Soybean Meal Futures: | Steady to $1 Higher |
| Wheat Futures: | 4 to 6 Lower |
MILK:
Class III milk futures remain unable to find solid support. The complacency of buyers in the cash market leaves traders unwilling to buy the futures. Milk production is showing early signs of improving seasonally but the increases may be slow compared to last year due to lower cow numbers. However, production per cow is running above a year ago and will make up some of the difference. Better weather is improving cow comfort and less expensive feed will keep rations balanced for optimum milk production. The U.S. Department of Agriculture (USDA) will begin bulk milk testing for bird flu following pressure from the dairy industry. The USDA aims to monitor the virus's presence in dairy herds and ensure the safety of the milk supply. The USDA will release the September Agricultural Prices report Thursday showing average prices for those commodities used to calculate income over feed for the Dairy Margin Coverage program.
CHEESE:
Cheese prices may be stuck in a range as supply is sufficient for demand, leaving buyers and sellers doing business as needed. Cheese inventory is lower than a year ago, but current cheese production is sufficient to supplement inventory, keep the supply sufficient and readily available. Some plants indicate demand has improved recently but will need to increase further to tighten supply.
BUTTER:
The price has seen some recent strength, but it is not expected to last very long. Churning is active due to abundant cream supplies. Retain demand is improving but food service demand is steady to lighter. Butter futures hold some premium to current cash, but not as much as usual.
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