OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Lower |
| Soybean Futures: | 13 to 16 Lower |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | 1 to 3 Lower |
MILK:
Milk futures remained under pressure in overnight trading with sales continuing after barrel cheese showed further weakness on Monday. The potential for milk prices throughout the rest of this year has been reduced substantially over the past few weeks. It has not been a matter of an increase in the milk supply, but rather a change in attitude. Once buyers of cheese and butter realized there would be sufficient supplies available through the end of the year, they saw no need to be aggressive buyers. Milk production has been increasing compared to a year ago with August production only 0.1% below the previous year. If the pattern continues, production could exceed the previous year over the next few months.
CHEESE:
The rapid decline in cheese prices has been brutal. Barrels have fallen 69 cents since the record high on September 18. This has not been a record decline, but the fact that only four loads have been traded during the decline has been unprecedented. One would think prices are low enough to increase buyer interest, but that support has been elusive.
BUTTER:
The butter supply is comfortable for the rest of the year. Buyers are looking to the first quarter of 2025 as contracting is being done. Some manufacturing plants have indicated that the available cream supply is higher than usual for this time of year. Milk component values have been higher so it stands to reason that more cream would be available.
