OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 1 Lower |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $0.50 to $1.00 Higher |
| Wheat Futures: | 2 to 3 Lower |
MILK:
The August Livestock Slaughter report supported what the milk production report showed for cow numbers. Cow numbers in August were up from a year ago, with dairy cattle slaughter down from a year ago. It was the lowest August slaughter number since 2007. Feed prices are expected to remain low, making it profitable to hold onto lower-producing cows. Lower milk prices have not increased slaughter and may not through the rest of the year. This will keep a sufficient supply of milk available to the market and limit the upside potential for prices.
CHEESE:
Cheese prices are expected to continue to chop around. Price increases will be selling opportunities. Buying by packagers and recutters for holiday demand continues, but without them having to chase the market higher.
BUTTER:
Butter inventory is expected to be below a year ago on the August Cold Storage report that will be released this afternoon. However, that does not mean the price will trend higher. The past two cold storage reports showed butter stocks 6% lower than the previous year. Reduced domestic demand has impacted the market significantly.
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