OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Steady to 6 Lower |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 3 Higher |
| Soybean Futures: | 4 to 7 Higher |
| Soybean Meal Futures: | $2 to $4 Higher |
| Wheat Futures: | 10 to 14 Higher |
MILK:
The focus Thursday will obviously be on the spot market, but it will also be on the upcoming October Milk Production report. The anticipation might be for further contraction of milk production and cow numbers. That has been the trend the past two reports. There is also the possibility that heavy culling has slowed down due to the potential for better milk prices next year as seen by milk futures. The last time milk production fell below the previous year was in May 2020. Some of the reason for that is because there was quite a bit of milk being dumped and some of that was not recorded properly, resulting in production being down 1.0%. Production rebounded the following month, indicating it was an aberration. I estimate milk production to be even with last year and cow numbers to show a decline of 3,000 head from September.
CHEESE:
Prices may be at a level at which buyers may show more interest to pick up supply. However, traders will be cautious over price potential now that much of the holiday demand may be filled, leaving fill-in demand much of what will take place.
BUTTER:
Lower butter output is being supplemented with inventory to fill orders. There is current tightness of supply. Cream is less available for butter production and other seasonal products are pulling heavy cream volumes. Price should hold in this area with still a potential to reach $2.00.
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