OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 4 to 8 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | Steady to 2 Higher |
| Soybean Meal Futures: | $1 to $3 Higher |
| Wheat Futures: | 7 to 9 Higher |
MILK:
Over the past two weeks, Class III milk futures have erased what was gained the prior two weeks. Time of year and seasonal buying have not been able to provide support as supplies are sufficient. What is not being sold in the country through regular channels is coming to the spot market to be sold. Sellers have been aggressively moving supply rather than holding on to anything for a potential price rally. Dairy farms have had a tough time already this year and it does not look like it will improve very much for the rest of the year. Demand is good but not good enough to support continued higher prices. Milk production has been bouncing back with the cooler weather allowing for sufficient supply for bottling and manufacturing.
CHEESE:
Lower prices may increase buyer interest as they continue to purchase supply for fourth-quarter demand. However, upside price potential seems limited as supply of cheese is sufficient to satisfy demand. Inventory is decreasing seasonally with stocks below a year ago. However, buyers are not concerned over any supply tightness for the time being.
BUTTER:
Price moved to a new high for the year which may trigger further buying from those who had been purchasing on an as-needed basis. World price is significantly lower, but domestic demand is improving.
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