OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 2 to 4 Lower |
MILK:
Light trading volume during the day results in limited trading volume overnight. Traders are uncertain whether underlying cash prices will remain supported or if a retracement will take place. Higher cheese and butter prices yesterday did not provide support as traders remained negative despite the gains. The market will need to prove itself with further cash gains before traders will be more confident buying futures more aggressively. The USDA will release the World Agricultural Supply and Demand report this morning which will show USDA's estimates for milk production, milk prices, and dairy product prices for this year and next year. The Real Kosher Ice Cream company based in New York issued a recall of its "Soft Serve On The Go" ice cream cups in 19 states due to possible Listeria contamination. The recall is for all of its flavor options.
CHEESE:
It seems that cheese is well-supported with prices steady to higher so far this week. Buyers have held their positions being willing to purchase at this level. Sellers have had little reason to bring cheese aggressively to the spot market as milk receipts at the plant level are decreasing with spot milk prices higher. Cheese production is slowing.
BUTTER:
The market is in a quandary balancing supply with demand. Price is sideways to trending higher while international demand has slowed, and world prices are weaker. Continued higher price may reduce export demand further and for a longer duration. Yet, buyers will look ahead to increasing demand through the end of the year.
