OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 4 to 8 higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 5 to 7 Higher |
| Soybean Futures: | 7 to 9 Higher |
| Soybean Meal Futures: | $2 to $4 Higher |
| Wheat Futures: | 6 to 10 Higher |
MILK:
The strength of Class III futures was a bit of a surprise given the fact that the increase of cheese prices only gained back what was lost earlier in the week. Yet, Class III futures jumped significantly. Some of the strength of futures was the result of short-covering as those holding sold positions wanted to exit them in case underlying cash would continue higher. This was evidenced by the inability of the market to hold gains as well as some weakness overnight. Milk futures may hold Friday, waiting to see if underlying cash prices will catch up.
CHEESE:
Both block and barrel cheese prices moved back near the levels they were on Friday last week. This does not yet indicate the market will break above the sideways trend. Cheese demand is strong with good exports, but that has not yet been enough to establish a solid trend higher. Buyers still see sufficient supplies readily available to the market.
BUTTER:
Price has reached back near the highs established on Sept. 14. The market may still struggle with ample supply and steady production. Exports in August and so far, this year have been very strong. The market is expected to remain choppy.
