OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Lower |
| Soybean Futures: | 3 to 5 Lower |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 1 to 2 Higher |
MILK:
Milk futures are expected to continue to struggle as the underlying cash prices are likely to remain choppy. There is little reason for the spot price to increase significantly, and lower prices attract buying interest. Milk production is steadily improving as the weather is conducive to cow comfort and increased feed intake. The August Cold Storage report was neutral to slightly bearish as American cheese stocks increased rather than showing a seasonal decrease. The calendar will turn to October soon, and the month during which dairy prices historically reach a peak. Hopefully, this year they may find a bottom.
CHEESE:
The increase in American cheese inventory in August is not a good sign for the market. That is what is traded on the daily spot market and may continue to limit the upside potential for prices. This is the time of year during which there is a greater demand from packagers and recutters as they prepare for the holiday season.
BUTTER:
The price increase in butter on Friday was good to see, but it may be short-lived. Butter inventory was 6% below a year ago in August, but that may not be bullish. It has been 6% lower than the previous year for the past three months. Price increases may be selling opportunities.
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