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: | 4 to 6 Higher |
| Soybean Meal Futures: | Steady to $1 Higher |
| Wheat Futures: | 4 to 7 Higher |
MILK:
Closer Class III futures contracts have been trying to hold the rebound but have been slipping back. Later contracts have been holding in anticipation of higher prices due to tighter milk supply and strong demand. Class IV futures continue to hold gains despite the inability of butter to regain the losses. Milk production is steady to higher depending on the area of the country. Production per cow is slowly improving, which as limited the impact of reduced cow numbers. Strong world prices and world demand should keep exports strong. Domestic demand is steady. Feed prices remain a concern with grain futures trending higher due in large part the reduction of the South American corn and soybean crop.
CHEESE:
Cheese prices have been trending higher since the lows established in early summer. However, that has not been without volatility. The problem is that prices remain within the large sideways trading range it has been in for over a year. Prices are at the top end of the range but have not been able to consistently trend higher. The strong dry whey prices have provided substantial support to the market.
BUTTER:
The inability of price to rebound indicates buyers are comfortable with current supply they have on hand and what is available. Cream is more available allowing churning schedules to increase. Bulk butter is still tight, but there are some reports of inventory beginning to increase. However, it will take time to rebuild to the level of last year.
