OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Higher |
| Soybean Futures: | 12 to 14 Higher |
| Soybean Meal Futures: | $4 to $5 Higher |
| Wheat Futures: | 2 to 4 Higher |
MILK:
Milk futures struggled last week unable to find solid support from underlying cash. The market sees sufficient supply for demand, leaving little reason for buyers to be aggressive in the spot market. There is an indication milk production is improving in some areas. This will allow for manufacturing to receive increased volumes of milk to satisfy ongoing demand without difficulty. The culling of dairy cattle continues to slow while production per cow continues to improve. This will keep sufficient milk available for demand through the end of the year. The USDA will release the September Dairy Products report Monday afternoon showing the amount of products produced for the month. This report will not impact the futures market but supports why inventory and prices are why they are.
CHEESE:
Retail cheese demand is slowly improving but less than anticipated for this time of year. Demand from the food service industry is slower as restaurant traffic is lighter than anticipated. Cheese production has been steady but will improve as milk output increases seasonally. Cheese stocks are below a year ago, but are sufficient and will increase once the end-of-the-year demand is satisfied.
BUTTER:
The butter price has established a sideways pattern over the past month and is expected to continue in that pattern through the end of the month. If the prices break out of the range, they will likely break lower as the cream supply is heavier than usual for this time of year, and butter inventory is higher.
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