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: | 4 to 5 Higher |
| Soybean Futures: | 6 to 8 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | Steady to 1 Higher |
MILK:
Milk futures have been unable to find support with underlying cash prices continuing to erode. Milk receipts have decreased with many plants turning to the spot market for extra milk to maintain a full operating schedule. Of course, the desire to maintain strong product output keeps the market sufficiently supplied. This may slow as plants are having to purchase spot milk above class and then continue to sell the finished product at lower prices. It is doubtful that cow numbers will decline with lower milk prices as expansions are still taking place and cow numbers are being maintained. Farmers have not needed to cull cows to provide extra income.
CHEESE:
Cheese prices are nearing the lows last seen in June as buyers continue to hold back and purchase at lower prices. Sellers continue to offer cheese to the spot market aggressively and are willing to sell at lower prices. Until supply begins to tighten due to reduced production and/or an increase in demand, prices may remain under pressure.
BUTTER:
The butter price has declined more than anticipated. Surprisingly, the domestic price has not reflected the international price. The tight supplies in other countries have increased export demand substantially, but it has yet to provide strong support. Buying interest should increase at lower prices.
