OPENING CALLS:
| Class III Milk Futures: | 2 to 8 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Lower |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 1 to 3 Lower |
MILK:
Milk futures have been finding some support mostly from dry whey and then from higher cheese prices Wednesday. Traders will remain cautious as demand does not seem to have increased significantly. However, buyers may need more supply to satisfy an increase in holiday demand. USDA will release the September Milk Production report Thursday afternoon, which is expected to see milk production slightly lower than a year ago. I estimate production to be down 0.4%. The uncertainty will be the cow numbers from the previous month. I estimate cow number to decline 2,000 head from August, but this is just a guess as it could go either way based on what was released last month.
CHEESE:
The strength of cheese Wednesday might have been the beginning of a short-term trend higher. I say short-term as demand will need to improve not only for the holidays but thereafter to see much upside price potential. Dry whey may continue to trend higher but that will not be without price retracements at times.
BUTTER:
Buyers are willing to purchase supply at the current level, which indicates price may remain high for a longer period. Demand from the feed service industry and retail is steady. However, retail demand is expected to improve over the next month.
