OPENING CALLS:
| Class III Milk Futures: | 10 to 20 Lower |
| Class IV Milk Futures: | 5 to 10 Lower |
| Butter Futures: | 1 to 2 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 3 Higher |
| Soybean Futures: | 3 to 5 Higher |
| Soybean Meal Futures: | $3 to $4 Higher |
| Wheat Futures: | 4 to 6 Lower |
MILK:
It looks like traders are beginning the week somewhat bearish as lower cash trade on Friday set the tone. Cooler weather will increase milk receipts at the plant level allowing for processing to be steady to higher. Milk supply is sufficient for bottling and manufacturing demand leaving the market unconcerned over supply. However, milk production is running below a year ago which should keep supply from being over-abundant. Milk futures are expected to be choppy as lower spot prices will increase buyer interest and higher prices will increase seller interest. Seasonality should improve buying interest which could result in slowly improving prices, but a balanced supply and demand may leave the market with limited upside.
CHEESE:
Prices have been choppy over the past two weeks and may remain that way for a period. Milk supply is sufficient for manufacturing leaving buyers unconcerned over supply of cheese. However, they will step up to purchase for later demand which should limit downside price movement.
BUTTER:
Price has been following a similar pattern to cheese indicating the supply and demand is mainly balanced. Export sales continue to run significantly below a year ago, which makes more supply available for domestic consumption. Buyers have been able to purchase quite a bit of butter ahead for the end of the year as trading activity has been heavy on the spot market. This may limit upside price potential.
