OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 1 to 2 Higher |
| Soybean Meal Futures: | $2 to $2 Higher |
| Wheat Futures: | Mixed |
MILK:
There is little to indicate sustained market strength. Milk futures have fallen substantially over the past few weeks as there has been little reason for traders to be bullish. Underlying cash continues to struggle despite it being the time of year when buying interest is strong for cheese and butter. Supplies are sufficient, leaving buyers less aggressive. Cooler weather will improve milk production, with more being available for bottling and manufacturing. There is little concern over a tight supply. Milk prices will have difficulty increasing under the current market fundamentals.
CHEESE:
Cheese prices may remain in the sideways trading range that has been in place since November. It is unlikely there will be a change in fundamentals sufficient to push the market higher anytime soon. Cheese output is steady and will increase as the milk supply increases. Inventory should decline seasonally but may decline at a slower pace.
BUTTER:
The recent minor strength in butter may be short lived. Buyers have not been aggressive at the lower prices. This indicates they have no concern over supply through the end of the year. The price may trend higher briefly, but a long-term uptrend is not expected to unfold anytime soon.
