OPENING CALLS:
| Class III Milk Futures: | Steady to 10 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Higher |
| Soybean Futures: | 2 to 4 Higher |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 7 to 10 Higher |
MILK:
Class III milk futures are again moving back up toward $22.00 with October very close. October is being priced with about a week under its belt but remains wide open to be influenced by underlying cash. Overnight trade showed little activity with wide bid and offers placed with no interest in moving them. Traders are in a quandary, seeing that the strength of cheese prices seems real and increasing due to demand and the bearishness of the milk production report, indicating more milk production and supply down the road. Production per cow continues to improve as some changes in rations due to high prices have resulted in greater milk production. Adversity usually produces innovation and change, which can be very beneficial over time. That is what we are seeing now.
CHEESE:
Barrel cheese is in strong demand pushing price 11.75 cents over blocks. The recent strength should continue to support with no price void developing under the market. There may be a lot of cheese in inventory but the recent demand for fresh cheese is supporting price.
BUTTER:
Price seems to be comfortable and may move in the sideways range as buyers and sellers take care of business. The continued level of demand that will be seen through the holidays is uncertain. The substantially higher price of butter may limit purchasing and may limit the use of butter as a loss leader to bring consumers into stores.
