OPENING CALLS:
| Class III Milk Futures: | 4 to 6 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 6 to 8 Lower |
| Soybean Futures: | 21 to 24 Lower |
| Soybean Meal Futures: | $6 to $8 Lower |
| Wheat Futures: | 7 to 8 Lower |
MILK:
It does not appear to be a very strong start to the week, with overnight trading activity showing weakness. The October Class III contract is nearing the $15.00 level. Buyer interest in the spot cheese market remains lackluster as cheese remains available for demand. The August Cold Storage report was somewhat bearish to the market. This report, added to the milk production report, shows that milk production will remain above a year ago and the supply of butter and cheese will be sufficient for demand. Higher fuel prices are a concern as they may reduce demand as consumers try to balance their food budgets. Restaurant traffic may decrease, impacting demand from food service.
CHEESE:
Unfortunately, the block cheese price may revisit the low of the year established in early January. The price has been in a steep downtrend since mid-August and shows no sign of support. The fact that cheese inventory in August increased from July and is higher than in August 2025 does not bode well for the market. Milk production continues to increase, keeping cheese production strong.
BUTTER:
Butter has been showing weakness similar to block cheese, but the price decline has been more gradual and has taken place over a longer period of time. As with cheese, the butter price is not far from the low for the year set back in early January. The August Cold Storage report showed a decline in inventory, but the decline was less than usual, resulting in inventory being 10 percent above a year ago.
