OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 4 to 8 Lower |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 7 to 10 Higher |
| Soybean Meal Futures: | 2 to 3 Higher |
| Wheat Futures: | Steady to 1 Lower |
MILK:
Class III milk futures held well on Tuesday despite the decline in spot cheese prices. However, that does not mean much as market fundamentals do not suggest a bullish market anytime soon. The markets are following along seasonal lines, albeit at much lower prices than in many years and lower than what we would like to see. Milk production is increasing seasonally, with sufficient supply available for bottling and manufacturing. Bottling demand remains steady while cheese production is increasing due to higher milk receipts at the plant level. Spot milk prices have been at class to $2.00 above class, remaining reasonable for plants that need extra milk. The November contracts are the lead month as October finished trading on Tuesday. USDA will release the October Federal Order prices today.
CHEESE:
The decline of cheese prices may increase the interest of buyers if they need to purchase. They have little reason to be aggressive in building supplies for demand. Cheese is readily available and may keep price strength limited.
BUTTER:
It is uncertain where the butter price will find support. Each time the price has bounced, it has been short lived, falling back only to make new lows. Manufacturers continue to move butter to the market to limit plant inventories. Holding supplies has only resulted in a loss of money.
