OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 1 to 2 Higher |
MILK:
Class III milk futures had a significant price movement Monday. Traders were bearish, selling futures in anticipation that underlying cheese prices were not going to increase. That quickly changed as cheese buyers became aggressive and prices increased. The overnight trading activity does not indicate there will be follow-through Tuesday morning. Traders will wait to see whether buyers will remain aggressive in the spot market. The wet weather is impacting feed quality in some areas of the country with hot weather impacting milk production in other areas. Reduced milk supply is expected but may not tighten the market enough to create a shortage.
CHEESE:
The current cheese supply is sufficient for demand. Manufacturing schedules remain strong with milk receipts holding steady. Spot milk is tighter and difficult to find at a discount. The current cheese demand is steady but is expected to improve seasonally. The level of demand will impact the price potential of the market.
BUTTER:
The butter price remains in an uptrend. A dip in price is short-lived as buyers are willing to purchase to increase ownership. Butter contracts for the fourth quarter are being made with buyers purchasing to fill those contracts. Higher butter prices are expected over the next few months.
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