OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 6 to 9 Lower |
| Soybean Meal Futures: | Steady to $1 Lower |
| Wheat Futures: | Mixed |
MILK:
Trading took place overnight in Class III futures in various contracts through the rest of this year and mostly through the second half of next year. In fact, trading activity was rather good in those later contracts, which is very unusual. August, September and October 2022 contracts traded at or above $18.00 and a level they have not been since early in July. It seems traders might be thinking that the decline of cheese price Friday might be short-lived. It is the right time of year during which demand is higher and could allow for higher milk prices. However, there is no lack of milk supply with milk production slowly improving. October and November futures pushed higher overnight extending their gains above $18.00. The August Dairy Products report will be released Monday. There will be no Dairy Revenue Protection prices released due to the report.
CHEESE:
Cheese prices set back on Friday, but there is a strong possibility buyers may be more aggressive Monday and possibly this week as orders are being placed for the holidays as well as general demand being filled. All inventories of cheese are higher than a year ago, which may make it difficult to move price consistently higher.
BUTTER:
Butter is in a better position to move to higher prices due to declining inventory putting stocks lower than a year ago. However, supply still remains rather large leaving buyers unconcerned over supply. Sellers continue to want to move product rather than wait for higher prices.
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