OPENING CALLS:
| Class III Milk Futures: | 5 to 8 Lower |
| Class IV Milk Futures: | 4 to 8 Lower |
| Butter Futures: | 1 to 2 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 4 to 6 Lower |
| Soybean Meal Futures: | Steady to $1 Lower |
| Wheat Futures: | 1 to 3 Lower |
MILK:
Milk futures may retrace somewhat as there is anticipation that the underlying cash may show weakness. The reason for the anticipation of lower spot cheese prices is the pattern that has been prevalent for some time, characterized by limited upside price movement. There were no unfilled bids remaining at the close of spot trading on Tuesday, possibly indicating buyers' needs have been filled. There may be limited potential for futures to continue higher at this time of year unless demand improves and supply tightens.
CHEESE:
The block cheese price has increased 9.75 cents over the past three days, moving to the highest level since Aug. 20. Sellers may step in to take advantage of the higher price to move supplies more aggressively. Cheese production is steady to higher as milk receipts continue to increase at the plant level.
BUTTER:
The weakness in butter on Tuesday might continue today as buyers step back and sellers want to move product. We cannot rule out the potential for the price to make a new low for the year. Even though it is reported that inventory is decreasing, there is a sufficient supply available to meet demand.
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