OPENING CALLS:
| Class III Milk Futures: | 4 to 8 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 1 Higher |
| Soybean Futures: | 4 to 6 Higher |
| Soybean Meal Futures: | $0.50 to $1 Higher |
| Wheat Futures: | 1 to 2 Lower |
MILK:
Class III milk futures received a boost on Monday in the nearby contracts due to the strength of the underlying spot cheese prices. This moved the November contract above $17.00, with overnight adding to the gain. There is little in the dairy industry to get traders excited over prices. Increasing milk production keeps sufficient milk available for the market. The level of milk availability and increased manufacturing output will keep the market supplied. Seasonally, prices will show limited strength during this time of year and generally trend lower. However, because prices are very low now, price increases are possible as the market finds a balance.
CHEESE:
The increase in cheese prices may run its course soon as buyers' needs might be filled, and they step back. Higher prices may increase seller interest as they do not want to build inventory. Inventory generally declines during the second half of the year, but the slight increase in American cheese stocks in August were a bit bearish.
BUTTER:
It is uncertain how low the butter price could go. Increasing butter production could reduce the usual decline of inventory seen during this time of year. Buyers are not concerned about supply and remain unaggressive.
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