OPENING CALLS:
| Class III Milk Futures: | 5 to 15 Higher |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | 1 to 3 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 1 to 3 Lower |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 1 to 2 Higher |
MILK:
Overnight milk futures are extending the gains of Friday. Trading volume is good, indicating there may be further short-covering Monday. Traders anticipate buying interest in cheese may be stronger today, providing further support to the market. Cheese may follow the pattern of butter as buying for the holidays may become more prominent at these lower prices. Milk production is mixed across the country. Spot milk availability remains tight and what is available is commanding higher prices. There is sufficient milk available for bottling and manufacturing to keep plants satisfied. Inventory is being used to satisfy demand, resulting in a seasonal decline. USDA will release the August Cold Storage report Monday.
CHEESE:
Spot cheese trading is expected to see further gains Monday as cheese buyers may come in to take advantage of the lower prices. The strength of butter may be leading the market higher as holiday demand is moving more in focus as buyers assess inventory and potential demand. Cheese inventory is expected to be below year earlier levels in the cold storage report Monday.
BUTTER:
There is no way of telling whether buyers have reached a threshold for butter or if buyers need to purchase more to fill orders and prepare for holding demand. Price moving to $3.00 has been a surprise with follow- through buying likely to continue. Churning is active with demand utilizing fresh supply as well as some inventory.
