OPENING CALLS:
| Class III Milk Futures: | Steady to 3 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | 1 to 2 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 3 to 5 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | Mixed |
MILK:
Milk futures continue to trend lower with greater pressure on Class IV contracts. The underlying cash is providing little support as weakness continues to dominate. Milk production remains strong and is not expected to change anytime soon. Farmers continue to push milk production to improve cash flow. Feed prices are less expensive, allowing for a reduced need to cull. Milk production per cow is significantly better than last year, with a limited impact being seen from bird flu. The supply of milk is sufficient for bottling and manufacturing.
CHEESE:
Cheese prices are nearing the bottom end of the trading range. Lower prices should stimulate demand, but buyers remain content to purchase on price weakness. Buyers are purchasing for the fall and holiday demand but without the aggressiveness usually seen. Cheese production and inventory are sufficient to satisfy demand.
BUTTER:
The butter price is poised to dip below $2.00, where it has not been since 2021. Manufacturers continue to move their supplies rather than hold out for better prices that may not occur. They are limiting inventory at the plant level. Churning is increasing as more cream is becoming available.
