OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| 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: | 1 to 2 Higher |
MILK:
Milk futures will fluctuate with the underlying cash market due to the absence of a specific trend developing. There is sufficient milk available to meet demand, which may keep prices stable and choppy. The time of year does not suggest there will be much upside price potential unless something unforeseen takes place, significantly impacting the market. Milk output is slowly increasing, along with the addition of more cows to the herds. The current milk prices and the high prices for calves have not increased culling. Cow numbers may continue to rise as farms increase their cow numbers.
CHEESE:
The increase in the milk supply has increased cheese production. Higher milk production is not overwhelming the market, as increased cheese production limits the decrease in inventory. The inventory of American cheese increased in August compared to July, rather than decreasing as it usually does. The reduced decline in inventory may be the pattern for the rest of the year.
BUTTER:
The decline in the butter price on Monday took some of the bullishness out of the market that had recently developed. It had been anticipated that delayed demand would support the market, bringing more aggressive buying into the spot market. However, Monday's decline eliminated the gains of last week, which dampened that enthusiasm.
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