OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 1 to 3 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 2 to 4 Lower |
MILK:
Class III milk futures have made a nice retracement this week as cheese prices provided support. Traders were cautious Wednesday as the sharp rise of blocks so far this week may be too good to be true. Milk production is slowly improving seasonally, keeping both bottling and manufacturing plants satisfied. There is no shortage of milk. The spot market is tighter, but not indicative of lack of supply for current manufacturing and bottling needs. Bottling demand has been steady and will see some increase as specialty items are produced for the holidays. Many cheese plants are running on full schedules. Traders are nervous now that block cheese price has moved near the top of the trading range.
CHEESE:
Block cheese price has increased 21.50 cents over the first three days of the week. There have been very few loads traded as sellers held back seeing the aggressive buying activity. One unfilled bid pushed the block price up 8.50 cents Wednesday, which may have put the market in a precarious position and a possible void under the market. Cheese futures have not added extra premium is anticipation of limited upside potential.
BUTTER:
Traders are more optimistic for butter price. It is possible price may reach $2.00 before the end of the week. Demand remains strong and is improving as the holiday season nears. Retail buyer have been active in placing orders ahead of time in order to make sure they receive product on time even if there are transportation delays. Butter output has been reduced due to a tighter cream supply and higher cream prices.
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