OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Steady to 5 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Higher |
| Soybean Futures: | 4 to 7 Higher |
| Soybean Meal Futures: | Steady to $1 Higher |
| Wheat Futures: | 7 to 10 Higher |
MILK:
Class III milk futures were supported Monday despite the weakness of barrel cheese. The fact that the decline of barrels was more than offset by the strength of blocks, resulted in futures moving higher. Traders still retain a level of caution as the feeling is that upside potential is limited. However, this is the time of year during which demand increases as buyers of dairy products anticipate, and fill fall and holiday orders. Milk production has been holding steady, but with cooler weather, cow comfort improves, resulting in increased milk production. Trading will be light until spot trading provides further direction. Overnight futures were mixed with trading confined to October through December contracts.
CHEESE:
Block cheese is at the top of the trading range that had been dominant for much of the year. This could result in buyers holding back to some extent as they may not want to push price higher. However, it is the time of year that demand increases, which may keep buyers more aggressive than they have been since the beginning of the year. Barrel price should rebound as buyers take advantage of the lower price.
BUTTER:
Butter production remains stable, but demand is improving and expected to continue to improve. Fresh production is being moved to the market with inventory also being used to fill orders. Inventory still remains larger than last year but is expected to decrease as the rest of the year progresses. The trend remains higher.
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