OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Higher |
| Soybean Futures: | 7 to 10 Higher |
| Soybean Meal Futures: | $4 to $6 Higher |
| Wheat Futures: | 2 to 3 Higher |
MILK:
Milk futures began the day stronger on Monday, but the weakness of underlying cash turned the market lower with December, January, and February making new lows. The milk production report showed milk production below a year ago with lower cow numbers, but that is not expected to have much, if any, influence on the market today. It is unlikely there will be much movement of underlying cash leaving milk futures floundering without support. More milk has been moving to manufacturing as schools will be closed the rest of the week. This milk will be handled easily as plants have sufficient capacity. Some still indicate being understaffed which is limiting the ability to increase production.
CHEESE:
The weakness of barrel cheese has been a surprise with the price declining 16 cents in 2 days. That is a real concern at this time of year when there should be better prices due to increased demand. Prices are likely to find some support at some point but are not expected to trend higher anytime soon.
BUTTER:
The strength of butter on Monday is not expected to continue as buyers see no reason to be very aggressive. Much of the buying for the holidays is complete with regular demand and fill-in orders dominating much of the market. Overall demand is steady with some indication that restaurant demand has slowed a bit. The October Cold Storage report will be released on Wednesday giving an idea if supply is growing.
