OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 4 to 6 Lower |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | Mixed |
MILK:
The strength of Class IV futures is unlikely to follow through today as underlying cash is not expected to see further strong gains. Buying cheese and butter is taking place in preparation for holiday and end of the year demand, but buyers have not had to be aggressive. The market is supported as supply and demand in general seem to be balanced. However, lower milk production and steady to higher demand may result in a tighter milk supply over time which could support milk prices through the end of the year. Cooler weather is and will be moving into areas that have been extremely hot, which will improve cow comfort. Milk production will improve but likely not back to pre-hot weather levels. There will be sufficient milk available for demand.
CHEESE:
Prices are supported but supply is not tight enough to cause significant price strength. There is no concern over a lack of supply even though cheese inventory is below year-ago levels. It may be difficult for blocks to move above $2.00 under the current market fundamentals. Both domestic and international interests need to improve.
BUTTER:
Price may have a difficult time moving above the previous high as churning is active and inventory remains above a year ago. However, buyers have been a bit more aggressive recently as they look ahead to upcoming demand. Current demand is steady and increasing.
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