OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Lower |
| Soybean Futures: | 2 to 8 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | Mixed |
MILK:
Class III milk futures dropped back further than they should have in relationship to underlying cash, but selling pressure increased the losses. Even though spot milk prices are commanding a premium, indicating a tighter supply of milk, there is still sufficient available for all manufacturing and bottling needs. At the present rate of milk production and overall supplies, there is limited upside price potential. Class IV futures closed higher, providing some light to the dairy complex. Milk futures are expected to show weakness prior to spot trading as traders remain skeptical over price strength.
CHEESE:
Cheese prices have accomplished very little this year. Current prices are near the same level they were earlier this year. There have been price increases, but they have been short lived. Prices should increase seasonally as buyers prepare for end-of-year demand. But with sufficient supplies, buyers have not had to purchase aggressively.
BUTTER:
Price may have begun to trend higher, but it will be slow going as there is little reason for buyers to be aggressive. Inventoried butter is being used to supplement fresh supply to meet demand. This should slowly reduce inventory, eventually getting it back in line with last year.
