OPENING CALLS:
| Class III Milk Futures: | 3 to 7 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 2 to 3 Higher |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 2 to 3 Lower |
MILK:
Not much is expected in the milk market as there has been little change in fundamentals. The overall bullishness in the market remains, as milk production remains strong and is increasing seasonally. The available supply of milk is not overwhelming the market, but it is sufficient to keep the market comfortable. There is no concern over supplies tightening. A significant amount of buying by packagers and recutters for the holiday season has been completed, with regular purchasing continuing to meet demand and maintain a cushion of supply.
CHEESE:
The weakness in cheese prices on Friday may persist today, with buyers being less aggressive. Increasing cheese production due to higher milk receipts from farms may reduce the decline in inventory for the rest of the year. The Cold Storage report for August showed an increase in American cheese stocks rather than a seasonal decrease. This may limit the upside price potential.
BUTTER:
There is concern that the butter price may see further weakness this week. The decline last week indicates that price increases are limited. Aggressive buying is tied to filling immediate orders, and once those are filled, buyers will step back. There is no indication of a price bottom in the near term.
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