OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Steady to 5 Higher |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Lower |
| Soybean Futures: | 8 to 11 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 6 to 9 Lower |
MILK:
Class III milk futures were able to close higher in all contracts except front-month October. Traders are cautious as the slight weakness of barrels may signal price resistance. It would not be surprising for sellers to become more aggressive and take advantage of the higher prices to move some product. Milk futures will react accordingly. It has been a positive week for milk futures with October over $22.00 and November knocking on the door of $22.00. Generally, we can expect choppy markets as we move forward. Demand will need to remain strong and as strong as last year to keep milk prices supported. However, that may be a tall order in the current financial environment as consumer prices continue to increase. The September Federal Order class prices were announced Wednesday, showing quite a difference between the classes. Class III was $26.51, down $0.40 from August. Class III was $19.82, down $0.28 from the previous month. Class IV price was $24.63, down $0.18 from August.
CHEESE:
Cheese is expected to remain choppy. Prices are moving as buyers and sellers take care of current business rather than purchasing ahead for demand potential. There is uncertainty over that demand potential through the end of the year, leaving them cautious. There is sufficient milk for demand.
BUTTER:
Butter moved to match the record high established Sept. 13. All will be watching spot trading to see whether a new record could be established Thursday. Overall, demand remains strong with buyers still looking for product at this level feeling there is little downside risk.
