OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 4 to 6 Higher |
| Soybean Meal Futures: | $2 to $4 Higher |
| Wheat Futures: | 2 to 5 Higher |
MILK:
After the significant increase in Class III futures yesterday, traders were cautious on following through overnight. The market has been filled with up and down movement on a frequent basis leaving traders uncertain of any long-term trend developing. With the market somewhat balanced and with supply and demand at the current level, there is no concern over a shortage and there are no overwhelming supplies. Milk production is improving, but it is not expected to overburden plants with milk. Components are higher than a year ago at this time and colder weather is just around the corner. Better components mean better cheese yield keeping sufficient cheese available to the market. The increase of milk futures was welcomed but is being met with skepticism as these price swings have become common. Traders are trading short-term trying to scalp the market for a profit rather than taking a position and holding. Today is the last day to trade September futures and options with the Federal Order prices announced tomorrow.
CHEESE:
Block cheese bounced back to close at $2.00 leaving the market in an overall sideways trading range. Barrels continue to remain in an uptrend and significantly above blocks. Demand for barrels is strong with supplies tighter. Demand for fresh cheese is good, but not good enough to push price consistently higher. The window of the strong demand period is narrowing.
BUTTER:
Price is comfortable at the current level for now. It is unlikely price could make a new high but current demand could push it higher. Buyers remain active feeling downside price potential is limited. Price is expected to remain range bound for the time being.
