OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 4 to 8 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 4 Lower |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $3 to $4 Higher |
| Wheat Futures: | 2 to 3 Lower |
MILK:
The strength in milk futures on Monday did not carry over into the overnight market. Short-term traders might liquidate recently established long positions ahead of spot trading in an attempt to take a profit rather than take a chance on the direction of the market. Seasonal buying is supporting the market, but the buying may be less than exuberant as cheese is available to the market. More milk is moving to bottling for school accounts, but higher production than a year ago will reduce the impact on available supplies.
CHEESE:
Cheese prices may move back to the previous highs as buyer interest continues. Buyers are looking ahead to demand later in the year and would rather purchase now than take a chance on higher prices later. However, higher milk production may limit the upside price potential for prices unless demand increases sufficiently to utilize the extra supply.
BUTTER:
The butter price seems to have found a bottom, with buyers expected to purchase at the lower price to increase their ownership for later demand. The price could move back near the level it was at in early July before the end of the year if demand improves for both retail and food service.
