OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 6 Higher |
| Soybean Futures: | 10 to 15 Higher |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 7 to 10 Higher |
MILK:
The strength of Class III futures Wednesday was a bit of a surprise due to mixed underlying cheese prices. At times, weakness of block cheese results in selling of Class III futures, but not yesterday. Strength stemmed from the fact that a load was traded Wednesday rather than price declining on an offer without any buyers. The strength of barrels then provided further support. Milk supply has tightened in some areas as demand for Class I milk has increased and milk production remains at lower levels. Milk receipts at the plant level are expected to improve over the next weeks as cow comfort improves and milk per cow increases. The decision by Foremost Farms to reduce the pay to their patrons through the end of the year or longer will have a definite and disastrous impact on those farms. Farms are struggling with higher costs as much as the plants are, but the farms have nowhere else to turn.
CHEESE:
Prices are expected to continue to chop around as buyers and sellers take care of business. Sellers are not holding back supply in the anticipation prices may improve as holiday buying increases. They are moving supply as they have it due to the uncertainty over holiday demand and potentially slower demand into next year. Some varieties of cheese are moving well.
BUTTER:
Price is trending sideways as supply and demand are balanced. Butter production is not expected to increase very much more through the end of the year. Some plants are selling some cream due to demand from cream cheese producers and an attractive price. Butter inventory is expected to decline further through the end of the year.
