OPENING CALLS:
| Class III Milk Futures: | 10-15 Higher |
| Class IV Milk Futures: | 5 to 8 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 7 to 10 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 2 to 3 Lower |
MILK:
The strength in Class III futures overnight is surprising. There has not been any change in fundamentals over the weekend. The recent Milk Production report was bearish, while the Cold Storage report was neutral. High cow numbers and production per cow continue to be maintained. It seems as if traders want to create some volatility ahead of the year's end to move the market in their favor to liquidate positions at a profit. Caution will be exercised due to the steady spot butter and cheese prices on Friday. Recently, steady prices have been followed by further weakness. The December Federal Order class prices will be released on Wednesday. The November Agricultural Prices report will also be released on Wednesday.
CHEESE:
Cheese prices are not expected to see much movement, with upside price potential limited through the end of the year and moving into 2026. Demand generally slows during the first quarter, resulting in increased inventory. The November inventory was already 2 percent above a year ago.
BUTTER:
There is concern the butter price could move to a new low for the year again this week. Buyers are not expected to be aggressive, as the holiday demand has been met, and ongoing demand may not be as great. Low price may stimulate demand, but production will easily meet that demand.
