OPENING CALLS:
| Class III Milk Futures: | 3 to 6 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 6 to 8 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 5 to 7 Higher |
MILK:
There is not much price movement expected ahead of spot trading again Tuesday. The trading volume overnight could suggest another active day, even without much volatility. Traders continue to scalp the market attempting to make a small profit rather than establishing long-term positions. Slowly increasing milk production will keep milk available for bottling and manufacturing. Increased cow numbers may result in higher milk production through the first half of next year when demand generally is slower. However, lower prices may improve buyer interest in stored dairy products earlier than usual to take advantage of lower prices. This could provide a contra-seasonal price movement.
CHEESE:
Cheese prices may be at the bottom for now, but may not see much upside in price potential anytime soon. Demand is improving for the holidays, but not as much as anticipated. Buyers continue to purchase supplies as needed, remaining unaggressive.
BUTTER:
Butter production remains active and cream supply remains heavy. Most churns are running at capacity to utilize the available cream. Sellers have been offering it to the spot market without hesitation as they limit inventory build. Buyers remain comfortable with the supply resulting in limited upside price potential.
