OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 1 Lower |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | 4 to 5 Lower |
MILK:
Class III futures showed significant weakness on Monday despite steady cheese and dry whey prices. Traders see little reason for price strength in the near term. Increasing milk production with sufficient supplies for bottling and manufacturing is keeping end-users complacent. Increased plant capacity is absorbing higher milk production without difficulty. Some plants have expanded capacity without taking on additional patrons, with expansions of current patrons filling the extra capacity. Carthage, Missouri, will be the site of a $276 million cheese plant operated by Schrieber Foods. It is expected to be operational in 2028. Today is the last day to trade September dairy futures and options, with the Federal Order prices to be announced on Wednesday.
CHEESE:
There is little anticipation that cheese prices will trend higher anytime soon. Any price increase will be short-lived. Increasing milk receipts at the plant level will keep production strong and cheese available to the market.
BUTTER:
Significant volumes of butter continue to be offered on the daily spot market. Buyers do not need to be aggressive as plants are willing to sell at lower prices.
