OPENING CALLS:
| Class III Milk Futures: | 8 to 15 Higher |
| Class IV Milk Futures: | 5 to 15 Higher |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Lower |
| Soybean Futures: | 5 to 6 Lower |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 5 to 7 Higher |
MILK:
Class III futures may continue to be choppy with little direction from cash cheese and dry whey prices. Class IV futures may remain supported as nonfat dry milk buying interest remains strong. Milk production is steady to higher, keeping sufficient supply available for bottling and manufacturing. Increased demand for fluid milk due to schools reopening is being met with sufficient milk supply. Cheese and butter production remain steady. Dairy cattle slaughter increased in July, but did not reduce the cattle herd as reported on the monthly milk production report. Production is expected to remain above last year through the end of the year.
CHEESE:
The block cheese price closed below the previous low on Aug. 15. This indicates supply is sufficient as buyers have access to cheese without having to be aggressive. The usual seasonal buying has not been aggressive as buyers remain content to purchase supplies as needed and to increase inventory when desired.
BUTTER:
The volume of butter that continues to be offered to the market is unusual for this time of year or, in fact, any time of year. I have never seen the amount of uncovered offers consistently remaining at the end of each spot trading session. Spot trading activity has been substantial for quite some time. This may continue as cream supplies increase.
