OPENING CALLS:
| Class III Milk Futures: | 15 to 30 Lower |
| Class IV Milk Futures: | 45 to 10 Lower |
| Butter Futures: | 1 to 2 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 5 to 8 Higher |
| Soybean Meal Futures: | $3 to $5 Higher |
| Wheat Futures: | 4 to 8 Higher |
MILK:
Traders had the extended weekend to assess the impact of the new COVID variant on overall demand both domestically and internationally. The overnight reaction is negative. It is expected to remain that way until spot trading provides direction. Milk supply is sufficient for current demand. Demand for specialty holiday items has increased, pulling more milk to those areas of production. Overall demand should remain strong over the next few weeks as Christmas approaches. Front-month November futures are higher as they adjust to the weekly AMS prices released last week. Tuesday is the last trading day for November futures and options.
CHEESE:
Buyers of cheese may hold back on the spot market Monday over concerns of the impact of demand due to the new strain of COVID. There is concern over a possible further impact on shipping as well as demand from the food service industry. However, it is the holiday demand period and this should not curtail demand through the end of the year.
BUTTER:
Butter is in strong demand and should not see much impact as the lack of demand from one area may be made up by increased demand from another area. Buyers are looking ahead to next year and assessing how aggressive they need to be. Strong retail demand should remain over the next few weeks.
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