OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 3 to 5 Lower |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 2 to 3 Higher |
| Soybean Meal Futures: | Steady to $1 Lower |
| Wheat Futures: | Mixed |
MILK:
Class III milk futures have had a nice rebound over the past four days, with the September contract moving to the highest level in a month. Milk production remains higher than last year and may limit the upside potential for milk prices as there is sufficient milk available for demand. Bottling demand will increase as schools reopen in a few weeks, but that will have a limited impact on butter and cheese production. The potential for higher milk prices will keep farmers holding onto cows and adding more to improve cash flow.
CHEESE:
The block cheese price has been steady to higher over the past six days. The price is back to the highest level since June 16. Barrels have followed suit, moving to the highest level since June 16. Seasonal buying may have surfaced as they look ahead to upcoming demand. Higher cheese production may limit the price potential over the next few months unless demand improves.
BUTTER:
The butter price seems to have limited upside potential. Price increases are short lived. Buyers have been able to purchase significant volumes of butter earlier in the year, reducing the need to be aggressive now. Retail demand has slowed recently and is lower than expectations for this time of year. More cream will be available for churning over the next months.
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