OPENING CALLS:
| Class III Milk Futures: | 4 to 8 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Higher |
| Soybean Futures: | 5 to 7 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 3 to 4 Higher |
MILK:
Overnight trading was unusually high in the September through November Class III contracts. The September contract will cease trading next week on Tuesday, with the Federal Order prices announced on Wednesday. The AMS weekly prices report influenced the September contract, resulting in a decline of 14 cents. The strength in the cheese prices on Wednesday provided some support overnight as futures closed lower on Wednesday. Traders continue to scalp the market in an attempt to take a quick profit and are not holding long-term positions. USDA will release the August Livestock Slaughter report Thursday, indicating whether low milk prices have increased the culling of dairy cattle.
CHEESE:
The expectation is that cheese prices may have limited upside potential. Higher prices may trigger selling interest. Cheese supply is available to the market, with buyers confident that sufficient supply will remain through the end of the year.
BUTTER:
It is uncertain where the butter price will find a bottom. It is unusual for the price of butter to be below cheese. This indicates the bearishness of the market, with buyers confident over supplies and sellers continuing to offer it on the spot market. Increasing cream supplies will keep the churning active.
.jpg)
