OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 2 to 5 Higher |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 1 Lower |
| Soybean Futures: | 2 to 3 Higher |
| Soybean Meal Futures: | $5 to $7 Higher |
| Wheat Futures: | 6 to 7 Lower |
MILK:
Class III milk futures continue to struggle to find support as spot cheese and butter prices continue to flounder. Without the support of the underlying cash, there is little reason for futures to increase. Milk production is improving seasonally, with more milk available due to substantially higher cow numbers. There is an anticipation that dairy cattle culling will increase due to low milk prices, but that does not seem to be the sentiment in the country. Extra manufacturing plant capacity is being filled by farms desiring to increase cow numbers. It does not appear that the seasonal price strength will materialize. Supply remains higher than demand.
CHEESE:
Cheese prices may either develop a price range or revisit the lows last seen in June. The downtrend in the block cheese price that began in mid-August remains intact. Buyers are obtaining sufficient supplies in the country and remain unaggressive in the daily spot market.
BUTTER:
There is little anticipation of a price increase anytime soon. A large volume of loads remains at the close of spot trading each day despite the good volume of trading on the spot market. Current demand is not able to reduce the supply and tighten the market.
