OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 4 to 6 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | Mixed |
MILK:
Milk futures have eliminated the gains of last week. This leaves traders cautious and unwilling to buy the market even for a short-term trade. The weakness of block cheese leaves little reason to be bullish on the market. USDA will release the World Agricultural Supply and Demand report Tuesday at 11 a.m. CST. This will show USDA's expectations for milk production, milk prices, and dairy product prices for this year and 2026. It is anticipated USDA will reduce price expectations compared to the previous report. The estimates are generally reflective of what took place during the month prior to the report. The report also shows grain ending stocks and demand expectations. This report is not a market-mover for dairy.
CHEESE:
The anticipation is for the block cheese price to either hold steady or decline further. There is no indication of support for the market. Manufacturers remain willing to move cheese on the spot market as quickly as possible and at lower prices rather than building plant inventories.
BUTTER:
It is uncertain how long the butter prices will hold. Consumer demand has improved for the holiday season, but it is unlikely this demand will be maintained. The supply of cream is readily available, keeping churns active to utilize the supply.
