OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 6 to 8 Lower |
| Soybean Futures: | 8 to 9 Lower |
| Soybean Meal Futures: | $0.50 to $1 Lower |
| Wheat Futures: | 9 to 11 Lower |
MILK:
Milk production continues to increase. The increase is due to more cows in the nation's dairy herd. Milk production was expected to be higher in the August milk production report, but the increase in cow numbers was not expected. Low milk prices have not thwarted the desire to increase cow numbers. The hope is that lower milk prices will be short-lived, but not according to the current futures market. The highest Class III price seen through 2027 is $17.59. That will be much better than the $15.72 price we are looking at for October, but still nothing to get excited about. Class IV futures are better, but do show contracts through 2027 no higher than $18.50.
CHEESE:
There is little reason for cheese buyers to be aggressive in th spot market. The supply of cheese is plentiful, with current demand being met and supplies being purchased for later demand. As milk production increases, cheese production will increase, resulting in higher inventory through the end of the year than a year ago.
BUTTER:
The price is only 4 cents from the low that was last seen in early January. Buyers are active in the spot market, but not aggressive. They see no reason to be aggressive due to sufficient butter available to the market. Butter output is slowly increasing as the butterfat content in milk improves and cream supply increases.
