OPENING CALLS:
| Class III Milk Futures: | Steady to 5 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 1 Lower |
| Soybean Futures: | 8 to 10 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 5 to 7 Lower |
MILK:
The World Agricultural Supply and Demand report released Friday did not provide much support to the market. The market generally does not move because of the report as these estimates change based on what the market is doing prior to the report. However, it does provide a barometer of the market potential. There is no shortage of milk, and the market is moving toward the time of year during which demand generally slows. This may keep current prices trading in a range and cause the next few futures contracts to roll down as price premium is eliminated from the market. Milk futures may drift ahead of spot trading.
CHEESE:
Prices are expected to be choppy overall for the week but may see further weakness Monday as buyers hold back. That may change as immediate orders have been placed over the weekend and need to be filled quickly. But even that would likely result in only a quick bounce and not long-term strength or change in trend.
BUTTER:
Buyers and sellers may be comfortable at the current price level which may move price sideways for a period. Churning is active but cream supplies have tightened due to the increase in demand from Class II products for the holidays. With stronger cream prices, some plants are selling some of their cream supply rather than churn it for the time being.
