Overnight Trade Picks Up as Class IV Weakens, Class III Turns Mixed
Overnight trade started the night with more activity than we have seen in the last few night sessions. Class IV is experiencing some weakness while Class III found some small buying in the evening session. By morning, Class III became mixed.
OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 6 to 10 Lower |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 3 Lower |
| Soybean Futures: | 7 to 10 Higher |
| Soybean Meal Futures: | $0.10 to $0.40 Lower |
| Wheat Futures: | 2 to 3 Lower |
MILK:
For nearly all this week, many parts of the country are under a heat advisory. While milk production has been trending higher most of the year, abnormally high temperatures that carry on for five to six days can typically have an impact on short-term milk supply. Tuesday, there is plenty of milk available, and the milk being produced has a lot of cream to keep churning at full capacity.
CHEESE:
Cheese saw little price movement Monday. With not much consumer demand in the short term, there is little reason to get excited about buying cheese at this time. Stocks are adequate and no change is expected in the next few weeks. The cash market showed much of that story to start the week off as it was unchanged with little bids or offers during the trading session.
BUTTER:
Butter is seeing a story play out of a processor sitting on an abundance of supply with a limited number of buyers available. The number of offers in the marketplace show that there is plenty of product to purchase. Bargain buyers are willing to step in here to purchase butter, especially with the holiday baking season just around the corner; however, there is no reason to get in a rush on Tuesday.
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Robin Schmahl can be reached at rschmahl@agdairy.com
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