OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Lower |
| Soybean Futures: | 7 to 9 Lower |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | 3 to 5 Lower |
MILK:
Milk futures will struggle if underlying cash cannot find support. The buyers of cheese and butter continue to anticipate further cash weakness holding back and buying on the weakness. Supplies are sufficient leaving buyers unconcerned over supply through the holiday season. Bottlers and manufacturers have sufficient milk available for needs. The attitude of the market is bearish keeping milk futures under pressure. Milk components are higher than usual for this time of year improving cheese yield and cream supplies. The market is balanced at the current price levels. However, the market never remains comfortable for very long and either the bearishness will increase, or traders will turn bullish for the long-term depending on any change in market fundamentals.
CHEESE:
The unfilled bids remaining for barrel cheese at the close of spot trading on Monday, provided hope that the market may be near support. There does not appear to be a price void above the market or that would have been uncovered. The current block and barrel prices seem to be in line with demand.
BUTTER:
The more loads of butter traded at lower prices, there is less of a chance for a price rebound. Buyers have purchased substantial supplies on the spot market without being aggressive. The more that is purchased now, the less there is that needs to be purchased later. This may leave the market with limited upside price potential for the foreseeable future.
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