OPENING CALLS:
| Class III Milk Futures: | 2 to 10 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 4 to 7 Higher |
| Soybean Meal Futures: | $1.40 to $1.60 Higher |
| Wheat Futures: | 1 to 2 Lower |
MILK:
Fluid milk is available in all regions. The Central region has recently seen distribution-caused tightness for cheese production as much of the milk supply went toward bottling efforts while the market gauges school demand with the new initiative to add whole milk to school menus. High transportation costs have also added to the difficulties of moving products to lower supply areas. On the positive side, the Central region has had great weather to improve cow comfort and give a recent boost to milk production. Overnight trade is quiet heading into Tuesday, with Class III trading 2 to 9 cents higher.
CHEESE:
Cheese continues to see strong demand for mozzarella. Cheddar supply will be temporarily shorter as production has had some issues with downtime and quality issues. Holiday purchasing has begun and can be attributed to the strength seen in the spot market early last week. Export demand for cheese is especially strong in the West. However, weaker domestic food service demand is weighing on cheese prices.
BUTTER:
Butter is waiting for the seasonal buying to kick in. However, supplies are adequate despite slightly lower inventories as reported Friday, Oct. 23, in the Cold Storage report. Cream is available across all regions and butter production is steady. Demand from Mexico is taking some of the cream supply, but there is plenty to go around.
