OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 2 to 4 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 1 Lower |
| Soybean Futures: | Steady to 2 Lower |
| Soybean Meal Futures: | Steady to $1 Lower |
| Wheat Futures: | Steady to 2 Higher |
MILK:
It will be interesting to see if underlying cash prices will again increase Thursday. The number of unfilled bids for barrels has been surprising and supportive to the market. Yet, traders are cautious as the pattern of limited upside potential has been prevalent for quite some time. The market is heading into a time when demand is generally slower and inventory builds. Milk supply is plentiful with spot milk prices declining. For the most part, the weather remains good for milk production which continues to slowly improve. Cows are moving from one operation to another as some that exit the business are being absorbed by another that is expanding or has room in the current facilities.
CHEESE:
The amount of buying interest over the past week for barrels has been a surprise. Demand generally slows over the next few months, but there is strong interest in buying. However, buyers are not very aggressive with most of the bids below the market. There is hope manufacturers will want to move product rather than hold onto it, which may put pressure on prices.
BUTTER:
Price is expected to chop around in a range as supply and demand is sorted out. Supply is expected to end the year higher than it was a year ago. It will be up to demand to determine price strength. International demand is depressed with no indication of a change in the near term. Price may slip back again today after the increase Wednesday.
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