OPENING CALLS:
| Class III Milk Futures: | 8 to 14 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | 1.5 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 1 to 2 Higher |
| Soybean Meal Futures: | $0.50 to $1.50 Higher |
| Wheat Futures: | 1 to 4 Higher |
MILK:
USDA released its Livestock, Dairy and Poultry Outlook last week. Milk production continues to show growth with no slowdown in sight. The slaughter of dairy cows has increased year over year but remains low when compared to the last three years. Imports were strong from the January to August time frame, up 15.2% higher than last year, totaling 5.9 billion pounds on a milk-fat basis. On a skim-solids basis, imports were 4.5 billion pounds, a reduction of 2.5% from 2025. Exports were up 27.4% on a milk-fat basis and 3.3% on a skim-solids basis. Cheese, butter, dry whey and lactose were all the biggest factors in the year-over-year increase while dry skim milk products and whey protein concentrates all declined due to high prices.
CHEESE:
Cheese saw some very large increases when looking at exports in Friday's report. American-type cheeses were 21.1 million pounds higher from January to August, or 10.1% higher year over year for exports, coming in at a total of 231.4 million pounds. Other types of cheese totaled 844.4 million pounds exported from January to August, an increase of 172.5 million pounds or 25.7% higher.
BUTTER:
Butter had one of the biggest year-over-year increases in export products sold. In 2025, the U.S. shipped 104.8 million pounds of butter internationally. In 2026, the amount of butter exported gained 58 million pounds, totaling 162.7 million pounds. That is an increase of 55.3% more butter exports year over year. Domestically, butter gained 3.2% more demand, totaling 1.5722 billion pounds.
