OPENING CALLS:
| Class III Milk Futures: | 4 to 10 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 7 to 9 Lower |
| Soybean Meal Futures: | $3 to $4 Lower |
| Wheat Futures: | 1 to 3 Lower |
MILK:
The selling pressure on Class III futures on Friday was a bearish reaction to the weakness of block cheese. Traders focused on the weakness rather than looking at the cash market as a whole. The gains of barrels and dry whey offset the decline of blocks in the price calculation. That may be why Class III futures are higher overnight. However, trading activity was very light, which does not provide a strong sense of strength. The neutral milk production report did not provide the pressure on the market. Milk production for the third quarter of the year was down 0.7%. Production is steady to increasing seasonally, keeping bottling and manufacturing supplied.
CHEESE:
It seems buyers may be more aggressive as time moves closer to the holidays with more loads traded on the spot market. However, with sufficient supply available for demand due to steady cheese production, upside price potential may be limited unless we see demand improve. Dry whey may see overall continued strength.
BUTTER:
It is difficult to determine whether buyers will continue to remain interested in purchasing at the current price level. So far, they have not pulled back to any great extent. Price might remain choppy at a higher level as buyers purchase to fill orders and prepare for holiday demand.
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