OPENING CALLS:
| Class III Milk Futures: | 10 to 20 Higher |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Higher |
| Soybean Futures: | 8 to 11 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 10 to 15 Higher |
MILK:
Milk futures succumbed to the selling pressure, running rampant across the commodity markets. Last week, traders focused on the weakness of block cheese, resulting in lower Class III milk futures. The higher block cheese price Monday had no real impact on futures as selling was influenced by what took place in the outside markets. Overnight, futures showed double-digit gains as the attention has turned back to underlying cash. If lower blocks influenced futures negatively last week, higher blocks should influence futures this week. However, there remains concern over the impact on demand due to increasing interest rates and high inflation. This is the time of year during which demand is strong and buying should be aggressive. However, demand is uncertain, leaving the market searching for direction.
CHEESE:
Block cheese uncovered buying interest at the lower price. Buyers may be more aggressive this week as they continue to purchase cheese for the holiday period. There is a strong possibility that blocks can regain the ground they lost last week as barrels remain supported and holiday and ongoing demand buying will continue.
BUTTER:
Price should hold in a sideways pattern for a period as demand is being fulfilled. However, once holiday buying is finished, price may decline to some extent. Butter futures are showing a discount through the end of the year and into next year. But even at that, price is expected to hold at historically high levels. Price should remain choppy.
