OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 6 to 7 Higher |
| Soybean Meal Futures: | $3 to $5 Higher |
| Wheat Futures: | 2 to 3 Lower |
MILK:
Fundamentals in the Class III market remain largely unchanged, as they have been for some time. There is little reason for prices to rise much, as milk supplies are sufficient. There continue to be numerous reports of expansions taking place. Processing facilities that have expanded have opened the door for farms to increase milk production. Although calf prices have decreased somewhat, they continue to provide significant income for the dairy. The USDA will release the August Livestock Slaughter report today. The report may show an increase in dairy cattle slaughter, but that has been offset by higher cow numbers.
CHEESE:
The block cheese price is struggling to find support, with the potential for price to revisit the low. Barrels have held despite the weakness in blocks. However, the price is likely to adjust lower, as it has in the past, to move in line with blocks. Barrels are not used in the Federal Order class price calculations, so it does not make any difference where the price is.
BUTTER:
The bounce in the butter price on Wednesday is likely to be short-lived. However, the positive development is that unfilled bids remaining at the close of spot trading on Wednesday far exceeded the remaining offers. Maybe this will be the beginning of a market shift, and butter will see increasing support.
