OPENING CALLS:
| Class III Milk Futures: | Steady to 10 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 5 to 7 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 1 to 3 Higher |
MILK:
Milk futures have shown a nice rebound in prices as the attitude of the trade seems to be changing. However, traders will remain cautious as the current market still needs to prove itself that the trend is higher. Any weakness will quickly be sold as it has not been very long ago that underlying cash strength was short-lived. Cooler weather in much of the country is improving cow comfort, but a rebound in milk production is not likely to any great extent in the near term. There remains sufficient milk supply for demand. Bottling demand is increasing as they prepare for schools reopening for another year.
CHEESE:
There are expectations cheese prices could increase further Wednesday. Steady prices Tuesday were viewed as supportive. Buyers may slowly increase their buying as they look ahead to fall and holiday-expected needs, while at the same time assessing the level of ongoing demand. They may buy at lower prices to average out the cheese they purchased ahead at higher prices earlier in the year.
BUTTER:
There is not much excitement in the butter market. The movement of cash Tuesday was impressive as either buyers or sellers were aggressive at different times, resulting in the price swings during spot trading. Price is expected to remain in the range it has been in since early June.
