OPENING CALLS:
| Class III Milk Futures: | 2 to 5 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Lower |
| Soybean Futures: | 1 to 3 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 4 to 5 Lower |
MILK:
There is little reason for milk prices to increase. Underlying cash prices show little to get excited over, as business is being done without much fanfare. There is nothing to hinder the seasonal uptrend in milk production. It seems that cow numbers are being maintained or increasing. Without the benefit of government reports, we can only assess that based on information received from contacts in the country. High replacement cattle prices will influence farmers to hold onto cows that are paid for. Even if those cows are not high milk producers, they will still have a calf that is worth a lot of money, either as a replacement heifer or as a beef calf.
CHEESE:
Spot cheese prices may have limited upside potential from the current level, but prices may hold as demand improves for the holiday season. Increasing cheese production should keep a sufficient supply available to the market, reducing the amount of drawdown in inventory.
BUTTER:
The price is expected to continue fluctuating within the current lower range. The market may be developing support at the lows. Higher cream supplies are keeping churning active. Bulk butter supplies are sufficient, with the focus being on butter production for the retail market.
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