OPENING CALLS:
| Class III Milk Futures: | MIxed |
| Class IV Milk Futures: | 4 to 8 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 1 Lower |
| Soybean Futures: | 5 to 7 Higher |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 2 to 4 Lower |
MILK:
Class III futures showed some light trading activity overnight but traders did not seem to have much conviction that prices might weaken. The underlying cash was higher in all categories Friday suggesting, further strength today. However, the volatility will keep traders cautious as higher prices could increase selling interest. Milk production continues to decrease but there are signs production is beginning to level off. Cooler weather will improve cow comfort, which should increase milk production.
CHEESE:
Cheese prices may move higher as the month progresses. However, that will not be without price retracements as higher prices will increase selling interest. The block cheese price is quite a bit higher than a year ago, reflecting the current lower level of milk production and the lower output of American cheese as reported on the Dairy Products report.
BUTTER:
The butter price may retest the high of two weeks ago before selling pressure might increase and limit further gains. More cream was available for churning last week but supply will tighten again. Last year, the butter price exploded and rose rapidly throughout the month. The price is already high this year and should not be as volatile.
