OPENING CALLS:
| Class III Milk Futures: | 4 to 8 Lower |
| Class IV Milk Futures: | 3 to 6 Lower |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 2 to 4 Lower |
| Soybean Meal Futures: | Steady to $1 Lower |
| Wheat Futures: | Mixed |
MILK:
Stronger cheese prices last week did little to provide support to milk futures. Traders feel the upside price potential is limited and are not following the increase. Milk production has been impacted by increased temperatures, but remains higher than a year ago. Cow numbers continue to increase, which may ensure sufficient milk availability throughout the rest of the year. Demand has been holding, but at lower levels than a year ago. Buying interest should improve this month as preparations are made for the reopening of schools and the holidays. Cheese buying will increase for recutting and packaging for holiday demand and will continue into October. This may not be enough to provide substantial support to the market.
CHEESE:
Traders anticipate spot cheese prices to reach a threshold soon as buyers may not want to bid higher, and sellers will take advantage of the higher prices to move more supplies. Demand is steady, but less than expected for this time of year. Demand will need to improve or there will be limited upside potential for prices.
BUTTER:
Butter may find some buying interest at the lower price, but buyers are not expected to be aggressive. Food service demand has been slower than a year ago, and some reports indicate retail demand in areas has slowed over the past two weeks. Churning has slowed, but there is sufficient supply available for demand. In some cases, bulk butter is being sold at a discount to the CME price.
