OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 5 to 10 Lower |
| Butter Futures: | 1 to 2 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 12 to 15 Higher |
| Soybean Futures: | 25 to 30 Higher |
| Soybean Meal Futures: | $8 to $10 Higher |
| Wheat Futures: | 15 to 18 Higher |
MILK:
Class IV futures could see some follow through selling today following the substantial pressure yesterday. The weakness of butter could continue as price may retest the low of the trading range. Trading may remain choppy in Class III futures as there is uncertainty whether cheese prices will hold. Milk supply remains sufficient for demand. The recent impact of hot weather seems to have been minimized by the advance of cooling systems. Milk receipts are lower but have not seen a dramatic decline. Components have been impacted more affecting cheese yield.
CHEESE:
Steady blocks and a slight increase in barrel price do not suggest a bottom has been reached. Low prices may increase the interest of buyers If they begin purchasing for end-of-the-year demand. The problem is that they are uncertain about the level of demand that will be seen. This leaves them less aggressive now purchasing on an as-needed basis. Heavy cheese supply will keep a lid on the market.
BUTTER:
Price may have reached a level at which buyers are unwilling to purchase. Buyers and sellers had been comfortable in the range of $2.90 to $3.00 where it has now moved back into again. The question is whether it will remain in that range or if the weakness of nonfat dry milk may have a bearish influence pulling price below that level. Further weakness is expected today.
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