OPENING CALLS:
| Class III Milk Futures: | 10 to 12 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 1 Higher |
| Soybean Futures: | 2 to 3 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 7 to 8 Higher |
MILK:
There is not much to say about the dairy market that has not already been said. Milk production is following a seasonal pattern, rebounding from the impact of hot weather. Cow numbers remain high and will likely remain that way as farms have expanded and continue to expand. The downturn in calf prices may be temporary and will continue to provide substantial income for the operation. However, the greater impact on profitability will be lower milk prices as plentiful supplies of butter and cheese weigh on the market. Class IV futures have been strong due to the strength of nonfat dry milk. However, that may be near a threshold, as nonfat dry milk may be near price resistance.
CHEESE:
The block cheese price has been in a steady downtrend since Aug. 13. Buyers have been able to purchase the cheese they need without having to chase the market higher. Supplies are sufficient, leaving buyers complacent. The seasonal buying is taking place for recutting and packaging for the holidays, but that has not been able to support the market.
BUTTER:
There is a lot of butter around. Manufacturers have consistently offered large volumes of butter on the daily spot market. Buyer interest has been good, but not good enough to absorb what is available.
