OPENING CALLS:
| Class III Milk Futures: | 5 to 15 Higher |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | 2 to 3 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Lower |
| Soybean Futures: | 2 to 4 Lower |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 4 to 6 Lower |
MILK:
Milk futures made a substantial price increase during the last half of last week. Buyers stepped into the spot market to purchase product to fill orders and take advantage of the lower prices. Previously, the market fell because of limited buyer interest as orders were filled and concern over demand become more prevalent. Milk production was sufficient for demand with milk production steadily increasing. Once the orders are again filled and prices have increased sufficiently, there may be another void under the market during which buyers may have no interest again. However, exports continue to remain strong with the volume of dairy exports up 7% in September compared to the previous year. Overnight trading activity points to further gains, at least until spot trading sets direction.
CHEESE:
Either cheese took a breather Friday or buyers might have reached a point at which they may be unwilling to bid higher. Traders seem to think it just took a breather before moving higher. Buyers are not very interested in building inventory at this point and are purchasing as needed. With some indication of retail demand slowing, trades will remain cautious over upside potential.
BUTTER:
The rebound of butter has been swift but may run out of buying interest soon as price moves to a level at which buyers may not be very aggressive anymore. Export demand remained strong in September with a gain of 49% over a year ago. However, export demand may begin to slow as international buyers may not have been as aggressive due to high price and previous forward-contracted supplies running out.
