OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | Steady to 1 Higher |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 1 to 2 Higher |
MILK:
Milk futures have been in a freefall over the past two weeks as underlying cash prices have been able to provide support. The October and November Class III contracts below $17.00 at this time of year do not bode well for the rest of the year. Underlying cash and futures prices would seasonally increase as buyers are more aggressive as they purchase supplies for the holiday season. Packagers and recutters are purchasers as they prepare cheese for holiday gift boxes and specialty products. Milk production has reached its seasonal low, and cooler weather will improve cow comfort. Higher cow numbers will increase the potential for a significant gain in milk output over last year.
CHEESE:
Cheese prices moving to the lowest level since July 31 is not good for the price outlook for the rest of the year. Prices are moving counter-seasonally with little anticipation that prices will trend higher anytime soon. Cheese prices have remained in a sideways trading range since November.
BUTTER:
The butter price avoided falling below $2.00 but moving below that level is not out of the question. Last year, the price peaked at $3.1975 at this time and then fell substantially. That will not take place this year as the price is currently at a multi-year low. Not much strength is expected anytime soon.
