OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 3 Higher |
| Soybean Futures: | 3 to 5 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 2 to 4 Lower |
MILK:
Class III milk future cannot find sufficient underlying support to turn the trend higher. Futures have little, if any, premium in contracts through the next year. Underlying cheese prices have yet to break out of a range and trend higher. Class IV futures have been trending higher due to continued strength of butter and nonfat dry milk. This puts both classes in line with each other. Milk output has been generally steady over the past few weeks likely reaching a seasonal bottom. Current supply is sufficient to satisfy both manufacturing and bottling needs.
CHEESE:
Once block cheese reached to top of the range it has been in for much of the year, buyers held back as sellers stepped up to the plate as they wanted to take advantage of the higher price. This leaves the market choppy with buyers now holding back seeing how aggressive sellers will be. Demand is strong utilizing both fresh production and inventory to fill orders.
BUTTER:
Price continues to find support for steady food service demand and improving retail demand. Tighter cream supplies have reduced churning activity. This should continue to provide some support and a slow price increase.
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