OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 4 to 6 Lower |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | 6 to 10 Higher |
MILK:
The substantial pressure of last week on Class III futures may subside but may not reverse any time soon unless cash cheese finds support. The October contract will cease trading on Tuesday with the Federal Order prices announced Wednesday. About half of the November contract is priced still allowing for substantial volatility, but that volatility will dimmish somewhat each day over the next two weeks. Overnight trade only showed activity in the November Class III contract with bids and offers placed and not too far apart. However, traders were unwilling to move those levels as they exercise caution to begin the week. The CME is reducing the trading limits for grains beginning Monday. Trading limits for corn is now 35 cents, 90 cents for soybeans, $25 per ton for soybean meal and 50 cents per bushel for wheat. These are decreased for corn, soybeans and soybean meal with an increase for wheat.
CHEESE:
Cheese prices did not perform well last week with most of the pressure on blocks. Block cheese supply is more abundant as production is strong as seen by increasing cheese stocks. Some port congestion and hauling difficulties has backed up cheese into inventory at a time of year during which inventory generally decreases. Even with that, exports have been doing very well. Barrel supply is tighter resulting in the price inversion.
BUTTER:
Price is poised to reach $2.00 before the end of the year and maybe even this week as orders continue to come in. Production is being supplemented by inventory. This sufficient supply to meet demand, but the fact that inventory is below year earlier levels is certainly supportive to the market.OPENING CALLS:
