OPENING CALLS:
| Class III Milk Futures: | 4 to 6 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 5 to 7 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 1 to 3 Lower |
MILK:
Class III futures have developed a slight uptrend in nearby contracts, but continue to see pressure in later contracts. The inability of spot prices and futures prices to trend higher during this time of year does not bode well for prices for the rest of the year and the typically slower demand period early in the year. There is positive demand news, but the increase in demand is not enough to tighten supplies and raise prices. End users see sufficient supplies, leaving them confident to purchase on an as-needed basis. Milk production remains strong and is expected to remain that way even as culling increases. Tuesday is the last day to trade November futures and options with the Federal Order prices announced on Wednesday.
CHEESE:
The block cheese price has been unable to find support. Manufacturers are willing to move supplies at lower prices to avoid building plant inventories. Buyers have been content to wait for lower prices to purchase supplies for demand.
BUTTER:
The butter price is closely aligned with the block cheese price. Butter is struggling to find support even though domestic demand has improved. Lower prices and the holiday season have increased buying interest, but it has not been sufficient to tighten the supply.
