OPNING CALLS:
| Class III Milk Futures: | 4 to 8 Higher |
| Class IV Milk Futures: | Steady to 5 Higher |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Lower |
| Soybean Futures: | 1 to 3 Higher |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 1 to 3 Lower |
MILK:
Class III milk futures closed lower Monday. However, after the market was settled for the day, which takes place shortly after 2 p.m. CT, continued electronic trade showed futures turning higher after the release of the August Milk Production report. This carried through overnight as it could indicate high feed prices may be taking a toll on cow numbers and milk production. This may be contributing to the tightening of milk supply and spot milk prices increasing above class. This may not mean that the market has turned the corner and lower milk output will continue and prices will trend higher, but it does provide some positive news for the market.
CHEESE:
Traders will be cautious ahead of the spot market as the opposite movement of blocks and barrels creates some concern and confusion. Lately, prices have not been able to move in tandem with each other. However, the positive aspect is that at least on category, it is moving higher. The block/barrel spread moving closer together may provide some stability to the spot market, but price direction is uncertain.
BUTTER:
Butter price has retraced more than anticipated and now has threatened the uptrend that had developed. Retail demand is improving, and export demand is strong, but not enough to reduce supply and keep support under price. USDA will release the Cold Storage report on Wednesday, which hopefully will show a decline of inventory from the previous month.
