OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 10 to 15 lower |
| Butter Futures: | 2 to 4 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 3 Lower |
| Soybean Futures: | 10 to 15 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 6 to 9 Lower |
MILK:
Class III milk prices were mixed Monday with the large decline of butter prices tempering some of the early strength when barrel price increased. Mixed trading activity is expected prior to spot trading. There seems to be limited support for milk futures as underlying cash is struggling. There is significant concern over demand as the end of the year progresses. The Fed meeting that will be held Tuesday and Wednesday is expected to result in another increase of interest rates. That, along with continued rampant inflation, may impact demand for dairy as we move through the holidays and after. USDA has not yet released the September Agricultural Prices report. There has not been a reason given for the delay or when it is expected to be released.
CHEESE:
The bounce of barrel cheese price will be viewed with caution as there is little reason to expect price to trend higher. The seasonal price increase has already taken place with much of the early buying for the holidays already accomplished. Demand will be ongoing but buying may not be as aggressive as it has been as supply remains available.
BUTTER:
The huge decline of price Monday indicates prolonged higher price has accomplished the task of either slowing demand or spurring consumers to purchase supply ahead of time. This results in reduced purchasing now, which may continue through the rest of the year. Fundamentals have not changed to an oversupply, but reduced demand will leave sufficient available to meet the needs of the market. It will be difficult for price to regain the loss of Monday.
