OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Lower |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | Steady to $1 Higher |
| Wheat Futures: | 2 to 5 Lower |
MILK:
Milk futures have been slowly working back up again due to the sharp rebound of block cheese price this week. Front-month November is basically priced with limited movement through the rest of the month. Traders are exercising caution as block cheese price is at the top end of the trading range again. It would be nice to see it push higher after moving within a range throughout much of the year. The prospect for higher price may leave farmers holding back on culling even though feed prices are high. Much of the culling may have been accomplished that is necessary for the winter. Trading activity is expected to be mixed and light until the spot trading period.
CHEESE:
Barrels have shown limited daily price gains showing somewhat of a reluctance to increase. However, the strength of blocks may be a factor is providing support to barrels. We hope that there has not been a void developing under blocks and once the current buyer is satisfied, there will be more buyers waiting in line. However, traders are concerned price has increased too quickly on limited buyer interest.
BUTTER:
Demand is strong but not strong enough to push price to $2.00. It is anticipated inventory has continued to decline due to lighter butter output and strong demand requiring more inventory to supplement fresh supply. This will continue to provide strong support under the market.
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