OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 5 to 8 Higher |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 6 to 7 Lower |
| Soybean Meal Futures: | $4 to $5 Lower |
| Wheat Futures: | 3 to 4 Higher |
MILK:
The strength in Class III milk futures may be short-lived if cheese follows the pattern it has over the past few months. Price strength has been short-lived, and that pattern may not change. There is little reason for cheese and butter buyers to be aggressive. Milk production is sufficient for both bottling and manufacturing demand. Both farm and manufacturing expansions continue to take place. Class IV futures showed trading activity overnight in the October and January contracts. It is unusual to see overnight trading activity in Class IV contracts.
CHEESE:
The block cheese price is expected to see limited upside potential. It is expected to be choppy and remain lower for the foreseeable future. Cheese production is sufficient for demand and maintain inventory. Demand will need to improve, or supplies will increase and keep cheese prices lower.
BUTTER:
Butter will follow the same pattern as cheese due to increasing production and sufficient supplies. Price should be increasing seasonally as buyers look ahead to holiday demand, but the volume of butter available to the market keeps buyer interest satisfied without them having to bid the price higher.
