OPENING CALLS:
| Class III Milk Futures: | 3 to 8 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 2 to 4 Higher |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 5 to 9 Higher |
MILK:
The expectation is for follow-through buying Monday as more liquidation of short positions may develop. However, there is still an attitude of bearishness that has not been put to rest. The sharp rally from late June through mid-July followed by a sharp decline is still fresh on trader's minds. Cooler weather is in store for some of the nation, which should relieve some of the stress on cattle and improve the potential for milk production.
CHEESE:
All of the price loss of blocks since May 12 have been regained with a strong potential for price to move higher. Buyers seem intent on purchasing supply for fall and holiday demand. Increasing cheese prices are again bringing buyers in from the sidelines. Time of year would suggest this price increase is for real and may be sustained.
BUTTER:
Price continues to follow a down-trending pattern without the support needed to break that pattern. Churning has been active, but at reduced levels as some plants are selling cream rather than churning in order to limit inventory growth. However, that may begin to change as demand should improve through the end of the year.
