OPENING CALLS:
| Class III Milk Futures: | 4 to 8 Lower |
| Class IV Milk Futures: | 2 to 5 Lower |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Lower |
| Soybean Futures: | 7 to 9 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 6 to 8 Lower |
MILK:
Milk futures remain under pressure as underlying cash shows no support. Hopefully, prices may move to levels that will generate buying interest and higher prices. There are reports of improving demand in some areas while others indicate steady demand. The milk supply is sufficient for both bottling and manufacturing. Milk production remains at seasonally low levels but will improve over the next few weeks. The volume of milk available is not overwhelming in the market but is sufficient to keep the industry comfortable with supply. Traders turned bearish on the market after the milk production report and from the weakness of the underlying cash. Hopefully, some support will be seen from the cold storage report Friday afternoon.
CHEESE:
Cheese prices may have difficulty moving above the $2.00 level if prices rebound. Demand should improve through the holidays, but buyers are comfortable with supply. The September Cold Storage report is expected to show inventory below a year ago. If it has decreased more than expected, traders may turn bullish on the market again.
BUTTER:
The butter price is expected to remain choppy. A price increase will bring sellers to the market more aggressively. Churning is active, providing a sufficient supply of butter to the market. The cold storage report is expected to show inventory higher than a year ago, keeping the market range bound.
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