OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 4 Higher |
| Soybean Futures: | 7 to 8 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 6 to 7 Higher |
MILK:
It hurts to look at the Class III futures prices. The October contract is now the lead month with a price of $14.93. It has been quite some time since the Class III price has fallen below $15.00. If the current futures prices remain through the end of the year, it will be very difficult financially to cash flow. On the other hand, Class IV prices continue to increase, supported by strong nonfat dry milk. The dry whey price has reached the highest level in four years, with nonfat dry milk moving near the highs of early May. The Quarterly Grain Stocks report will be released today and may have an impact on feed prices depending on the level of grain on hand. The Agricultural Prices report will be released this afternoon, providing most of the prices used to calculate income over feed for the Dairy Margin Coverage program.
CHEESE:
This is not much to be said about the block cheese market, as sellers continue to offer supplies to the spot market at lower prices. The price falling back to the lowest level in more than six years at the time of year when both demand and prices usually increase does not bode well for the market.
BUTTER:
The butter price is only 1.75 cents above the lows of the year. The price may be low enough to generate greater buying interest, as there were 41 unfilled bids remaining at the close of spot trading. This may indicate buyer support may be near. However, the upside price potential may be limited
