| Class III Milk Futures: | 10 to 15 Higher |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | 2 to 3 Higher |
| Corn Futures: | 3 to 5 Higher |
| Soybean Futures: | 11 to 16 Higher |
| Soybean Meal Futures: | $4 to $6 Higher |
| Wheat Futures: | 10 to 14 Higher |
Milk futures posted substantial strength Thursday as short-covering was triggered due to the rise of underlying cash prices. December Class III futures have gained $1.00 over the past week. Underlying cash did not suggest that much of a gain, but it does not take much to see substantial moves when trading volume is light. Milk production is improving and not likely to see a slowdown anytime soon. Traders are concerned over the level of ongoing demand once the holiday period is finished. Food prices continue to rise along with prices of most other goods. The shortage of diesel fuel that is being faced may drive price significantly higher as trucking and railroad costs increase. Consumers will make further changes in their diets as they need to adjust what they eat and where they eat it.
CHEESE:The recent strength of cheese prices does not necessarily indicate a change of trend. Buyers will continue to purchase as orders come in but may not be aggressive in purchasing ahead for anticipated demand. There is uncertainty over ongoing demand, leaving buyers purchasing as needed. USDA will release the September Dairy Products report Friday, showing the level of dairy product production during the month. This report is not a market mover.
BUTTER:It is uncertain whether the increase of butter price Thursday may bring in more aggressive buying interest Friday. Buyers may want to take advantage of the low price and may step up before price moves higher. However, the recent large decline may not increase buying interest as buyers may be comfortable with their current level of supply.
