OPENING CALLS:
| Class III Milk Futures: | Steady to 6 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 2 to 4 Lower |
| Soybean Meal Futures: | Steady to $1 Lower |
| Wheat Futures: | 1 to 3 Higher |
MILK:
Milk futures held up well even though cheese prices declined, and butter prices remained steady. Overnight trade indicates traders remain somewhat confident the decline of cheese Monday might be short-lived. November Class III futures might reach back to $19.00 again as there seems to be support developing under the spot market. Milk production is improving seasonally, but gains may be less than usual due to increased culling and lower milk production per cow. There are increasing reports of farms both large and small that are struggling and that may sell out due to high feed prices and the cost of other goods and services. Costs are increasing in virtually all sectors as material costs are increasing, labor shortages persist, and the lack of truck drivers continues. This will keep expansions on hold. An increase of milk prices would possibly allow some farms to remain in business.
CHEESE:
Cheese prices have yet to break out of the range this year and trend higher. Prices are at the top end of that range and are poised to increase, but product remains readily available keeping buyer satisfied. Increased demand during this time of year should be able to move prices higher. Cheese futures do not hold much premium in contracts into next year as traders remain cautious.
BUTTER:
Strong export demand and increasing retail demand should support butter price. However, it may not be enough to develop a higher trend. Trading activity on the spot market is strong as sellers continue to move product rather than put it into storage. Buyers are purchasing without having to chase the market higher. This indicates a balanced market for the time being. Price is expected to remain choppy.
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