| Class III Milk Futures: | 5 to 10 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
| Corn Futures: | Mixed |
| Soybean Futures: | 1 to 2 Higher |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 1 to 2 Higher |
The pressure continued Class III futures on Monday due to further weakness of cheese prices. The market has put in a top for the year. The November contract is about half-priced and will show less volatility than other contracts moving forward the rest of the month. Class IV futures remain higher than Class III as the butter price is higher than cheese and the nonfat dry milk price is holding well. Milk production is sufficient for demand. Spot milk is available with a premium of as much as $2.00. Manufacturing plants would like more milk to increase production, but many are unwilling to pay a premium for available spot milk in light of the price weakness. Milk receipts at the plant level will improve as the year progresses and cow comfort improves.
CHEESE:Buyers are comfortable with the current cheese inventory and production. The Dairy Products report showed lower production in September than a year earlier, but lower American production and lower inventory than a year ago is not a concern presently. The demand is not as robust as anticipated, leaving buyers less willing to purchase an extra supply and remain content to purchase as needed.
BUTTER:Price is in a sideways trading range and may remain that way as buyers and sellers accomplish business without fanfare. Butter production in September was higher than a year ago. Higher butter production due to readily available cream supply leaves inventory higher than a year ago.
