Opening Calls:
| Class III Milk Futures: | Steady to 5 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
Outside Market Opening Calls:
| Corn Futures: | 2 to 3 Higher |
| Soybean Futures: | 3 to 5 Higher |
| Soybean Meal Futures: | $2 to $4 Higher |
| Wheat Futures: | 2 to 4 Higher |
Milk:
Class III milk futures showed strength yesterday following cheese prices higher. More optimism has moved into the market due to the fact that cheese prices are holding and not moving to lower levels. Markets generally are choppy this time of year as the market is moving from a high demand period to a reduced demand period. However, if strong demand continues, there may not be much of a change in overall product movement. Retail demand has been strong throughout much of the year, and that is not expected to change anytime soon. What will change is the volume of milk that will be available to the market and whether all of it will be able to be processed. Milk production is expected to be significantly higher than it was last year. The retail market may not be able to absorb all of the extra production that will be available without the help of the food service industry. This could lead to a problem finding sufficient manufacturing space without the implementation of plant quotas. USDA will release the November Milk Production report Thursday giving a good indication of the level of production we may see next year.
Cheese:
Even though numerous milk futures made new high closes Tuesday and it seems like cheese prices are exhibiting good strength; that is not the case. Cheese price have been moving in a about a 10-cent range over the past month. The fact that the bottom end of the range has held has provided that idea that the low has been established in the market and steady to higher prices will remain.
Butter:
Price is holding well despite growing inventory. Retail demand has been strong leading up to the holidays. The rubber will meet the road after the holidays as it will shift to regular demand and hopefully a strong export market. Price is expected to remain choppy for the near-term.
