OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Higher |
| Class IV Milk Futures: | 4 to 8 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 5 to 8 Higher |
| Soybean Futures: | 16 to 20 Higher |
| Soybean Meal Futures: | 2 to 3 Higher |
| Wheat Futures: | 10 to 12 Higher |
MILK:
The strong close of milk futures on Friday carried over through the overnight trade. Traders may feel that the strength in the spot prices on Friday will continue today. It was interesting to see the strength in Class III milk futures last week despite limited gains in the cheese prices for the week. The strength came from the increase in the dry whey price. Fundamentally, the market has not changed much over the past weeks. Milk production is increasing seasonally, leaving sufficient milk available for demand from bottling and manufacturing.
CHEESE:
It was a nice bump in cheese prices on Friday, which provided support to futures prices. The upside potential for prices may be limited if the pattern holds that once buyers' needs are satisfied, prices will fall back. There is sufficient supply for demand, with production continuing as milk production increases.
BUTTER:
Retail butter demand is improving as the holiday season approaches. Inventory is reported to be decreasing, but not as heavily as usual due to strong churning schedules. Cream supplies are reported to be higher than last year. Many butter manufacturers are running at capacity and have not needed to purchase extra cream from the spot market.
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