OPENING CALLS:
| Class III Milk Futures: | 3 to 5 Lower |
| Class IV Milk Futures: | 4 to 8 Lower |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 1 Lower |
| Soybean Futures: | 1 to 2 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 2 to 4 Lower |
MILK:
Class III milk futures were under pressure in nearby contracts Monday despite cheese prices being steady to higher. The inability of barrel cheese to hold the gains during spot trading gave traders the impression prices may have reached the upper threshold. The strength may be temporary but may see further buying interest if fill-in orders need to be satisfied or buyers are purchasing due to low prices. Milk production is steadily higher and is keeping both bottlers and manufacturers satisfied. Cheese production is active and butter plants are running on full schedules. USDA will release the World Agricultural Supply and Demand report Tuesday morning. It will show the supply and demand table for grain and the estimates for milk production, milk prices, and dairy product prices for this year and next.
CHEESE:
Cheese demand has been steady in recent weeks with some areas reporting increased demand for the holiday season. Retail orders have been satisfied with some fill-in orders being placed. A surge in buying interest is not expected over the next few weeks, but prices may be supported.
BUTTER:
The butter price may settle back through the end of the year as buyers have most of their expected needs covered. Cream supply is plentiful, meeting the demand from specialty holiday dairy products and butter production. Cream supply will be abundant during the holidays with lower prices expected.
