OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 4 to 6 Lower |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 1 to 3 Higher |
MILK:
Class III milk futures closed higher last week despite the substantial decline of spot cheese prices. Cheese prices will need to stabilize or increase, or milk futures will come under significant pressure. Futures will not move in the opposite direction as cash for very long without a price correction. There has been limited fundamental news to provide long-term support for milk futures. Milk production remains strong, and it is expected to remain that way for some time. Although the culling of dairy cattle has increased, it may be limited due to continued strong prices for calves.
CHEESE:
The block cheese price fell to the lowest level since July 6, 2023, on Friday. If the price is unable to find support and falls another 7 cents, it would be back to the levels of May 2021. Prices not finding support at the current levels at this time of year does make this a possibility.
BUTTER:
The improvement in butter demand has provided some support to the market. However, that demand may be temporarily supported by holiday buying. It certainly would be positive if demand were maintained due to low prices keeping consumers buying.
