Opening Calls:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Steady to 10 Higher |
| Butter Futures: | 1 to 2 Higher |
Outside Market Opening Calls:
| Corn Futures: | 2 to 4 Lower |
| Soybean Futures: | 12 to 16 Lower |
| Soybean Meal Futures: | $5 to $7 Lower |
| Wheat Futures: | Mixed |
Milk:
It may be difficult for Class III milk futures to move much higher unless supported by some aggressive buying returning to spot cheese. That is not expected to take place until possibly a lower level again as the market seems to be stair-stepping lower. Buyers continue to want to pick up supply but are content to wait for lower prices. Class IV futures got a little shot in the arm Tuesday due to the rise of butter price. Tuesday's futures price increases were the most we have seen for a while during the course of a day. Butter and nonfat dry milk were the driving force behind the move. USDA will release the November Federal Order class prices Wednesday. Class III will be the second highest of the year while Class IV may be slightly lower than the October price, according to where the traded is anticipating them to be.
Cheese:
Cheese demand is good and supply is available. The earlier demand for fresh cheese and the tightness it created is not the same at present. There is still a wide spread of 20.75 cents between blocks and barrels, indicating a greater demand is remaining for blocks. However, there is the cloud hanging over the market of increasing other cheese inventory, which may have a bearish impact through the next few months.
Butter:
Price has made a nice retracement providing some hope the market may have found a bottom. However, the overall price direction is still down when following the daily price chart. So far, this has been a bounce in a bearish market. The gain of nonfat dry milk recently does provide some support to the complex. Time will tell.
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