OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 4 Lower |
| Soybean Futures: | 3 to 5 Lower |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 15 to 20 Lower |
MILK:
Overall milk futures were mixed Monday following the movement of underlying cash. Milk futures are expected to remain choppy as supply and demand seem to be balanced at the present time. Class IV futures are higher as butter price remains historically high. Class III futures are holding in line with underlying cheese prices. Milk production is slowly improving as weather improves cow comfort. Feed prices do not seem to be declining during harvest as anticipated, but in fact may be strengthening as far as corn is concerned. Soybean meal has declined significantly with futures next year below $400 per ton. However, hay prices continue to escalate reducing income over feed. Milk futures may remain mixed prior to spot trading providing some direction.
CHEESE:
Prices are in a range with barrel remaining above blocks. Barrel supply is tighter and in better demand. Demand for fresh cheese is steady leaving price range bound for the time being. This is expected to continue for much of the month as buyers have access to sufficient supply in the country.
BUTTER:
Butter remains in good demand with buyers purchasing at the current high price without reservation. Price may move back to the recent record high again as orders need to be met. High prices in the retail market have yet to curtail domestic demand. The high U.S. dollar has yet to curtail international demand.
