OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Lower |
| Soybean Futures: | 7 to 9 Lower |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | 2 to 3 Lower |
MILK:
Milk futures have posted nice gains this week supported by stronger underlying cash. Traders are hesitant over continued upward price movement as supplies remain sufficient and demand is not as good as anticipated. Demand is expected to improve but may not be enough to support prices and turn the trend higher. Sellers may be willing to move supply on price increases limiting the upside potential. Estimates are being made about what milk production might have been in September, with some anticipating milk production slightly higher than the previous year. Milk output is at a seasonal low with some reports of milk receipts at the plants beginning to improve.
CHEESE:
It will be important for cheese prices to increase today, or milk futures could decrease. Buyers have been active but not very aggressive. Sellers have not held back in hopes buyers will chase the market higher. There is sufficient supply for demand leaving the market balanced.
BUTTER:
The upside price potential for butter may be limited as churns are running at full capacity with some plants turning cream away because of no more processing capacity. The sheer volume of loads sold on the spot market indicates supplies are plentiful. Buyers can purchase needs without difficulty.
