OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 3 Lower |
| Soybean Futures: | 7 to 9 Lower |
| Soybean Meal Futures: | $1 to $3 Lower |
| Wheat Futures: | 7 to 9 Higher |
MILK:
There is hope milk prices will be able to rebound again but underlying cash will need to provide the catalyst for that to happen. However, with little upside movement during this time of year, there is little hope of any sustained rally. In fact, traders are becoming increasingly bearish. Even with some periods of strength in underlying cash, traders are not buying into it. Milk futures are being day-traded or held for only a short term rather than holding for a long period. Daily volume is light as the markets are not generating much interest. Milk production is sufficient for demand. Bottling demand has been steady with cheese production slowly improving. Milk production during the month of September is expected to have been higher than a year ago. USDA will release those numbers on the milk production report Thursday.
CHEESE:
Prices are expected to remain choppy. This is little reason for buyers of cheese to be aggressive as a supply of cheese is already on hand and moving to areas ahead of time to make sure demand will be met. The limited trading activity in the spot market and the choppiness of prices indicate buyers are able to obtain supply in the country.
BUTTER:
Butter continues to show resilience as a price dip is generally viewed as a buying opportunity. Buyers are not hesitant about purchasing at this high level as demand remains strong and supplies tighter than desired. There have been some reports of slowing retail demand but that will be limited in the near term as consumers purchase for the holidays.
