OPENING CALLS:
| Class III Milk Futures: | 2 to 5 Higher |
| Class IV Milk Futures: | 4 to 8 Lower |
| Butter Futures: | 1 to 2 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Lower |
| Soybean Futures: | 4 to 5 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 4 to 5 Lower |
MILK:
Class III futures increased in the nearby contract on Tuesday but failed to generate strong buying interest in later contracts. This indicates they believe the market may not see much further upside price potential in the future. Futures contracts throughout next year show virtually no premium. Futures usually show seasonal premiums through the year in anticipation of stronger prices. Class IV futures show significantly more premium through 2026. The October contract is the front month as September finished trading on Tuesday. The September Federal Order class prices will be announced today.
CHEESE:
Spot cheese prices have made nice gains over the past few days, but that may have run its course if it follows the pattern seen much of the year. Demand may be improving as we move into the final quarter of the year. The supply of barrel cheese has been tighter as limited trading has been taking place. However, increasing cheese production may keep up with demand.
BUTTER:
There may be further weakness in butter today, as buyers have been able to purchase large amounts of butter over the past few weeks. The decline in price on Tuesday may indicate that much of the buying has been accomplished, and the price may fall back as buyers step back.
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