OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 3 to 5 Lower |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 5 to 7 Lower |
MILK:
The weakness of cheese prices Monday kept pressure on Class III milk futures. The bounce of cheese prices from the low could indicate buyers may be more aggressive at these levels supporting prices. However, traders will be cautious over buying milk futures as the upside price potential may be limited. There is no indication of a shortage of milk anywhere, leaving plants with sufficient milk to process for needs. The greatest need is for demand to improve. Milk production is not going to decrease anytime soon, requiring greater demand to improve milk prices. USDA will release the September Agricultural Prices report Tuesday, providing most of the numbers used in calculating income over feed for the Dairy Margin Coverage program.
CHEESE:
Sellers of cheese continue to move product to the market as quickly as possible rather than build storage, adding further cost to the product. Steady cheese production provides sufficient supply for demand, leaving buyers confident of supply. There is little concern from buyers over the ability to obtain the cheese they need at any time.
BUTTER:
Traders will focus on cash trading to see whether there will be further aggressive buying extending Monday's gain. Buyers do not have sufficient supply on hand to allow price to fall back as orders are placed and demand needs to be filled. Consumers continue to pay the higher price.
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