OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Lower |
| Class IV Milk Futures: | 5 to 10 Lower |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 1 Lower |
| Soybean Futures: | 4 to 6 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 2 to 3 Higher |
MILK:
Class III futures held well into the close on Wednesday despite the weakness of cash. Traders have had the night to assess the market and some have decided to sell contracts. The close of the spot markets on Wednesday could suggest further weakness today. Buyers may not yet be ready to step into the market to purchase cheese or butter aggressively. There has not been a surge in milk production and seasonal demand for dairy is improving, but market participants feel supplies will be adequate. The weakness of prices is earlier than usual but within the historical scope of a seasonal top. Spot prices will not decline from now through the end of the year, but may have difficulty regaining the uptrend.
CHEESE:
The unfilled bids at the close of the spot trading period would suggest further weakness today. Buyers may not yet be ready to step up to purchase supplies aggressively. When orders need to be filled above contracted orders, buyers may step in more aggressively until those orders are filled.
BUTTER:
The substantial weakness of butter has been a surprise and may not be over. The cold storage report will show the butter inventory for August. It is expected to be above a year ago, but inventory is expected to show a significant decline. The cream supply has increased leaving sufficient supply for manufacturing.
