OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 2 to 4 Lower |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 7 to 10 Higher |
MILK:
Milk futures have had a strong rally this week following cheese prices higher. This has pushed October and November futures back above $18.00 again. Underlying cash will need to support this rally, or it will falter. Milk production remains sufficient, supplying the needs of both bottlers and manufacturers with little to no concern over supply. Production is increasing seasonally, but spot milk availability has not grown. Increasing demand from manufacturers for the holidays should support milk prices. However, upside potential may be limited as supplies are readily available to the market. The ongoing problem is the lack of truck drivers to move the product to where it needs to be in some cases. This can create some temporary shortages in some instances even though there is sufficient product.
CHEESE:
There is strong potential for cheese price to move higher again Friday based on no sellers showing up at the spot market Thursday for blocks. However, the increase of cheese prices this week might be nearing a level at which sellers will want to take advantage of these higher prices.
BUTTER:
Price continues to chop around with little direction. It may be difficult for price to regain the losses of last week unless demand increases, resulting in further reduction of inventory at a faster rate than usual. Cream is generally available for manufacturing. However, spot prices are higher than many are willing to pay, which has limited extra production of butter.
