OPENING CALLS:
| Class III Milk Futures: | 2 to 10 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 4 Higher |
| Soybean Futures: | 4 to 6 Higher |
| Soybean Meal Futures: | $0.30 to $0.50 Higher |
| Wheat Futures: | 5 to 7 Higher |
MILK:
The Global Dairy Trade will take place later Tuesday to give a little more direction as far as price benchmarks for going forward as well as a better picture of world demand. Class IV milk has had little futures trade interest lately while Class III has drifted lower. Nonfat milk found some early strength in the evening trade. Overall, milk production is strong so upside will be limited despite high demand.
CHEESE:
Cheese output totaled 1.25 billion pounds on Monday's Dairy Products report published by USDA. That is 1.4% higher than August 2025. Holiday season is approaching quickly, so there is some optimism for price support as buyers take stock in supplies and plan for the seasonal demand.
BUTTER:
Butter production had an astounding 6.3% increase from August 2025 in Monday's report, totaling 187 million pounds. Nonfat dry milk was up 9.6% while skim milk powder fell a whopping 33.1% from a year ago. Butter should see a seasonal spike in demand in the coming weeks as the holiday baking season approaches.
