OPENING CALLS:
| Class III Milk Futures: | 8 Higher |
| Class IV Milk Futures: | 5 to 8 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | Steady to $1 Higher |
| Wheat Futures: | 1 to 3 Lower |
MILK:
The strength of milk futures yesterday provided more interest in trading overnight. Class III futures were higher with good volume for night trading activity. This may indicate futures may be higher ahead of spot trading with the anticipation spot prices may hold or move higher. Greater optimism seems to be developing over the potential for milk prices through the rest of the year. Futures have nearly regained all of the loss during late July and the first half of August. Milk output has declined but remains sufficient for demand. However, if there is limited upside potential for milk prices, milk production will remain lower as farms will not increase cow numbers or even think of expanding.
CHEESE:
Prices may have a difficult time moving above the $2.00 level in the near term. However, buyers may become more aggressive as they desire to increase ownership ahead of demand during the last quarter of the year. Exports continue to remain lackluster and run below a year ago which may hinder upside potential as more remains available for domestic consumption.
BUTTER:
Trading activity on the spot market remains active with buyers having no difficulty finding supply. Sellers remain willing to move product and are not willing to hold in the hope of higher prices. The current price is good with sellers taking advantage of it. Spot price may retest the recent high of $2.77 again.
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