OPENING CALLS:
| Class III Milk Futures: | Steady to 5 Higher |
| Class IV Milk Futures: | 4 to 8 Lower |
| Butter Futures: | 1 to 2 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 5 Lower |
| Soybean Futures: | 1 to 4 Higher |
| Soybean Meal Futures: | $1 to $3 Lower |
| Wheat Futures: | Mixed |
Milk:
Class III futures surged higher Thursday as barrel cheese prices increased. The market just could not hold back following only what was taking place with dry whey. Traders seemed to finally believe the higher trend in cheese might be real. October and November futures moved solidly back above $18.00 again. How much further they will be able to move will be up to underlying cash. Support will need to come from some stability of dry whey price or upside might be limited. There is no shortage of milk, which leaves sufficient supply for bottling and manufacturing.
CHEESE:
The recent trend higher of cheese has been certainly positive and has now offset the influence of lower dry whey. Increased cheese production has put more dry whey on the market. Supplies have increase with sellers wanting to move supply as quickly as possible. Hopefully, price may be low enough to improve demand allowing the market to find stability.
BUTTER:
The decline of butter Thursday increases the concern over supply building despite strong overall demand. Cream has been available keeping churns busy as they utilize the available cream. Generally, some operations would sell off some of their cream due to strong demand and attractive prices. However, heavier supplies leave plants less in need of purchasing extra cream. Inventory of butter continues to grow.
