OPENING CALLS:
| Class III Milk Futures: | 15 to 25 Higher |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 12 to 15 Higher |
| Soybean Futures: | 10 to 15 Higher |
| Soybean Meal Futures: | $4 to $5 Higher |
| Wheat Futures: | 12 to 15 Higher |
MILK:
The bearish implications of the milk production and cold storage reports did not have a negative impact on overnight trading. In fact, Class III futures are higher posting gains of 17-32 cents. Traders seem to feel underlying cash prices will see some buying interest today after holding steady yesterday. November and December futures moved above $21.00 overnight. Fall and holiday buying should increase soon as buyers need to get product to packagers and recutters as well as build supply to fill orders. The caution is just how strong demand will be as we move through the Fall. July milk production was up 0.2% and somewhat of a surprise as July was a month of record temperatures in many areas. Dairy farmers did a good job keeping cows cool and production rolling with milk per cow up 19 pounds.
CHEESE:
Cheese prices held steady yesterday with no trading activity. Last week, a steady cheese price was viewed as bearish while yesterday steady prices had little impact on the market. The fact that cheese inventory in July increased over June, could be considered bearish unless demand improves.
BUTTER:
Butter moved above the trading range for the third time. Maybe price will hold above $3.00 this time as buying interest improves seasonally. However, it could reach price resistance again with buyers unwilling to bid much higher. Overnight butter futures trading was non-existent.
