OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 5 to 10 Lower |
| Butter Futures: | 2 to 3 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Higher |
| Soybean Futures: | 12 to 14 Higher |
| Soybean Meal Futures: | $3 to $5 Higher |
| Wheat Futures: | 1 to 3 Lower |
MILK:
Lower dairy cattle slaughter in September does not indicate a tightening milk supply anytime soon. It will be up to demand to bring higher prices, but time is running out for heavier cheese buying ahead of the holidays. Demand could increase significantly as the holiday period approaches, but price impact may be limited unless supply tightens. Current milk production is slowly improving with component values also improving. Production is slightly below a year ago but is sufficient to supply current demand. December Class III futures moved to a new contract low Thursday with overnight trade falling lower.
CHEESE:
The bounce back from the low during block cheese trading Thursday may indicate price has reached a level at which buyers could be more aggressive. It may not be a matter of a tightening market or an increase of orders, but more likely attractive low price. However, we will take anything we can get.
BUTTER:
Price is on its way down and the extent of the decline will be determined by the need for buyers to fill orders and prepare for holiday demand. The trade anticipates price to fall substantially into the end of the year as current butter futures indicate an average price of $2.68 for December.
