OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 9 to 10 Lower |
| Soybean Futures: | 11 to 12 Lower |
| Soybean Meal Futures: | $3 to $4 Lower |
| Wheat Futures: | 14 to 16 Lower |
MILK:
Fortunately, dry whey prices are strong; otherwise, Class III prices would be significantly lower. The price is at the highest level since February 23, 2022. The nonfat dry milk price is at the highest level since June, but continues to provide substantial support to Class IV futures. The milk supply is sufficient for demand, but not burdensome. Spot milk prices are flat, close to $2.00 above. The August Milk Production report showed milk production will continue to remain higher than a year ago, making it difficult for milk prices to increase unless demand improves and exceeds a year ago.
CHEESE:
The block cheese price may revisit the low of the year before buyers may turn more aggressive to take advantage of the low price. The price is only 4.50 cents above the low of Jan. 12. Blocks have been in a freefall since mid-August. The August Cold Storage report will be released this afternoon. I think the report will show a decrease in inventory from a year ago, but the decrease may be less than usual, resulting in inventory remaining above a year ago.
BUTTER:
Butter may follow the same pattern as block cheese and may revisit the low of the year before support may be found. The current price is 5.675 cents above the low. Retail butter demand is variable, with food service demand showing gains.
