OPENING CALLS:
| Class III Milk Futures: | 8 to 15 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 4 Lower |
| Soybean Futures: | 8 to 12 Lower |
| Soybean Meal Futures: | $3 to $4 Lower |
| Wheat Futures: | 3 to 5 Higher |
MILK:
The large gain in Class III futures Tuesday corrected the market from being overdone to the downside. Continued gains will be to be supported by further strength in underlying cash. Cheese prices are expected to show further strength today with buyers wanting to purchase cheese at the current price rather than waiting for price weakness that may not develop. The underlying cash prices are in a range and expected to remain that way in the near term. Schools will reopen over the next few weeks, requiring more milk to move to bottling for school accounts. This will limit the volume of milk available for manufacturing.
CHEESE:
The action during spot cheese trading Tuesday would suggest further gains Wednesday. Sellers may hold back, waiting to see how aggressive buyers will be with bids raised to purchase cheese. It is uncertain whether buyers will turn more aggressive as they look ahead to upcoming demand.
BUTTER:
The butter price remains in a range with buyers and sellers comfortable at current prices. Current supplies leave buyers complacent. The butter futures hold virtually no premium through October and then are at a discount in subsequent months. It would be unusual for the price not to show further strength into October.
