OPENING CALLS:
| Class III Milk Futures: | Steady to 5 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Lower |
| Soybean Futures: | 5 to 7 Higher |
| Soybean Meal Futures: | Steady to $1 Lower |
| Wheat Futures: | 2 to 4 Higher |
MILK:
The market is going to see gains and setbacks as the market moves forward. There may be a limit to upside potential based on the level of milk production that will be maintained and the level of demand through the end of the year. Time of year is in our favor as buyers of cheese and butter generally become more aggressive as they prepare for increased demand through the end of the year. With cheese inventory already running below a year ago, there is good potential prices should increase further than what they are. The extent of that increase will be the result of continued culling that would reduce milk output, and/or increased demand. Both of these are taking place now, but the level of each will be uncertain as the year moves forward. Follow-though strength is expected in milk futures ahead of spot trading similar to the pattern so far this week.
CHEESE:
The rebound of barrels from the low yesterday may increase buyer interest as it may indicate the lower price level has been set and those who were waiting for further weakness may now step back up to the plate. Manufacturing has decreased as more milk is moving to bottling to supply school accounts.
BUTTER:
Price seems to have reached a plateau for the time being. Price potential may be limited due to buyers already having purchased significant supply ahead of time in preparation for fourth-quarter demand. The past two weeks have had a lot of butter traded during spot trading. Churning has slowed due to tighter cream supplies.
