OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 1 to 3 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 2 to 3 Lower |
MILK:
Traders did not get excited over the increase in butter and cheese prices on Monday. The attitude of limited price potential is prevalent. Butter has had five consecutive days of gain but that did not trigger much buying interest in Class IV futures. The level of milk production and the availability of dairy products leave the market with limited upside for the time being. Continued lower prices will eventually have an impact on milk prices as cow numbers and milk production will be reduced. However, there currently seems to be an interest in expansions with some of those taking place. That may keep cow numbers higher than expected over the next few months. The Global Dairy Trade auction today will provide an indication of international prices.
CHEESE:
Prices are expected to chop around through the end of the year. There may be further gains today, but those gains may be limited to how aggressive orders need to be filled. There is sufficient cheese supply for demand with inventory running near the levels of a year ago.
BUTTER:
After five consecutive days of price gain, the strength may subside as upside price potential is expected to be limited. Fill-in orders are being taken care of, which brings buyers to the spot market looking for supply. Once this is filled and buyers show less aggressiveness, sellers will become more aggressive.
