OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Lower |
| Soybean Futures: | 17 to 20 Lower |
| Soybean Meal Futures: | $4 to $6 Lower |
| Wheat Futures: | 7 to 9 Lower |
MILK:
Milk futures do not have much support. Nearby Class III futures have erased all of the gains since mid-July with December Class III futures nearing the $19.00 level. Demand for dairy products has been good but has not increased as anticipated moving toward the end of the year. Even though cheese inventory is below a year ago, milk production has been stronger than expected. Cow numbers have not decreased as anticipated. The impact of bird flu has not been as great as expected. Consumer demand has not improved due to high food prices and not only food prices, but also the cost of durable goods and services. The weakness of prices at this time of year is concerning as this is the higher demand period.
CHEESE:
Cheese buyers continue to hold back in the spot market anticipating further weakness. Manufacturers continue to offer cheese to keep it moving rather than leaving it in inventory and hope for a higher price. Prices should be near a level at which buyers may feel comfortable and will take advantage of the low prices.
BUTTER:
The butter price may be in a precarious position as demand from food service is lighter than usual, and inventory continues to grow relative to a year ago. Retail demand is improving but may not be sufficient to offset the increased production due to heavy cream supplies. This could put further pressure on the butter price over time.
