OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 2 to 10 Lower |
| Butter Futures: | 1 to 2 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 4 to 5 Lower |
| Soybean Futures: | 4 to 6 Lower |
| Soybean Meal Futures: | Steady to $2 Lower |
| Wheat Futures: | 4 to 6 Lower |
MILK:
The pressure on milk futures will likely be prevalent ahead of spot trading. There is an overall bearish attitude that prevails in the market and that is not going to change unless there is a definite shift in market fundamentals. I fear we are in a period of low milk prices that may last through potentially the first half of next year. The inability of underlying cash to support the market at this time of year does not bode well for the upcoming months. The Global Dairy Trade auction will take place Tuesday and provide an idea of world dairy prices. This is not a market mover.
CHEESE:
Barrel cheese price fell to the lowest level in about a month and may be in for further weakness. It may be difficult for cheese prices to find any reason to trend higher anytime soon. Steady to slowly increasing cheese production will keep sufficient supply available for demand. Buyers will be active, but not aggressive.
BUTTER:
Butter price may see a bounce as buyers will continue to purchase on the way down, but the market is headed lower and seems to be falling as quickly as it increased. Demand has not really been impacted by the higher price, but demand through the end of the year has mostly been met either with orders being filled or supply on hand. Churning is active, keeping demand satisfied.
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