OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 1 Lower |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 2 to 4 Higher |
MILK:
Class III milk futures have had strong gains over the past two days due to the strength of cash cheese prices. This has improved the outlook for milk prices again with the October contract closing above $21.00. It would seem that milk prices should find further support with prices generally increasing over the next few months. More milk is shifted to bottling as schools reopen, tightening the milk supply for manufacturing. Buying interest in cheese should improve as preparation is made for holiday demand. Milk futures show a seasonal pattern with the highest price in October and declining from there.
CHEESE:
The block cheese price has moved to the upper end of the trading range and may run into more aggressive selling interest. Sellers may hold back early during spot trading to assess the strength of buyer interest. If buyers are not aggressive, sellers may turn more aggressive and take advantage of the higher prices.
BUTTER:
The butter price has had little volatility and is similar to watching paint dry. Since mid-May, the price has been entrenched in a sideways range and may remain that way for a while longer. Butter futures hold virtually no premium as traders anticipate a flat market through the end of the year.
