OPENING CALLS:
| Class III Milk Futures: | 10 to 20 Lower |
| Class IV Milk Futures: | 4 to 8 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 1 to 2 Higher |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | 2 to 3 Lower |
MILK:
Class III milk futures were lower after cheese prices declined during spot trading. The September Milk Production report was released about the same time the CME settled the market for the day. After the settlement, further selling pressure was put on the market due to the bearishness of the report. This was reflected in overnight trade with contracts 32 cents lower to 4 cents higher. September milk production was higher than a year ago with production per cow up nine pounds from September 2023. The other bearish influence was the significant revision of August milk production 0.5 percent higher than initially reported. This indicates sufficient milk will be available for demand. However, the spot market may not be impacted much as this milk has already been available and processed.
CHEESE:
The weakness of cheese on Monday was not a surprise. Prices are expected to be choppy, and buyers and sellers take care of business. The buyers have not had to be aggressive as sellers continued to offer cheese on the spot market. Cheese is available, but it will be up to demand to generate more aggressive buying interest in the spot market.
BUTTER:
The butter price is not expected to trend higher anytime soon as there is sufficient supply for demand. Churning is active due to the abundant supply of cream. Strong production limits the amount of butter that needs to come out of inventory to meet demand. The cold storage report will be released on Friday and is expected to show butter stocks higher than a year ago.
