OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Higher |
| Soybean Futures: | 4 to 6 Higher |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 1 to 3 Higher |
MILK:
There is little in the dairy market to generate bullishness for the time being. The fundamentals have remained largely unchanged in recent weeks, with bearishness prevailing. Underlying cash prices have not provided support to milk futures. The milk supply is sufficient for demand. Increased bottling for schools has had little impact on the supply for manufacturing. Class IV futures continue to show weakness as the butter price declines. The November contract is nearing the $15.00 level, where Class IV prices have not been in quite some time.
CHEESE:
Cheese prices continue to flirt with the bottom end of the trading range. Hopefully, buyers will step up to the plate to purchase cheese at the low prices. Demand should improve as we approach to holidays. However, buyers are cautious due to steady cheese demand and the uncertainty over a further increase in demand. Inventory may not decline as much as usual through the end of the year.
BUTTER:
One would think there would be support in the butter market at this level, but so far, there has been no indication of that. Demand has not seemed to improve due to the lower price. Retail demand is showing some signs of improving, but that has been offset by reduced demand from food service. The low bid that had been placed in the spot market about two weeks ago at $1.67 may become a reality if the trend continues.
