OPENING CALLS:
| Class III Milk Futures: | 4 to 10 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 4 to 6 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 5 to 7 Lower |
MILK:
Milk futures cannot get a break the past three days. Once buyers had finished purchasing the volume of cheese and butter they wanted, the market fell back. The buyers see sufficient supply and have no need to be concerned through the end of the year. Demand has not improved as much as hoped. The harvest pace has been rapid with plentiful feed supplies available at reasonable prices. This may keep milk production strong as farmers balance rations for optimal milk production. Milk prices usually have a strong correlation to the corn price. The low corn price may result in lower milk prices next year. Reduced cow numbers are being made up for with higher milk production per cow.
CHEESE:
Cheese buyers have little concern over supply and bid the prices higher only when needing to purchase supply for immediate needs. Once that purchase is completed, prices fall back until lower prices stimulate demand. The inability of cheese prices to increase at this time of year is a concern and dims the price outlook through the rest of the year.
BUTTER:
The butter price may remain in a range as buyers and sellers seem comfortable with supply and demand. The cold storage report to be released on Friday is expected to show inventory significantly higher than a year ago. Churning is active keeping sufficient supply available to the market.
