OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 6 to 8 Lower |
| Soybean Futures: | 10 to 14 Lower |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | 10 to 14 Lower |
MILK:
The strength of Class III milk futures prior to spot trading Monday was surprising but that strength was supported after cheese and butter traded higher. Traders continue to remain somewhat leery over the recent increase of underlying cheese prices. Over the past 1 1/2 weeks, block cheese price has increased 12.50 cents while barrels increased 20 cents. However, this has not been reflected in milk futures. It is almost like traders expect the axe to fall at some point again. The market will need to prove itself, but it is unclear how high prices will need to go to do that. Milk production is steady to lower throughout the country. However, even with lower production there is sufficient milk available with spot milk still at a discount to class. Futures may remain mixed until spot trading provides further direction.
CHEESE:
Cheese prices give the indication a bottom has been established. There is uncertainty over just how high price will be able to move. Buyers are purchasing cheese for packaging in preparation of the holidays. It seems far off but purchasing product for gift boxes and other venues will begin soon if not already.
BUTTER:
Price remains in a sideways pattern with buyers and sellers doing business without much concern over tight supply or overabundance of supply. This may keep prices rangebound for an extended period of time.
