OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Steady to 5 Higher |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 3 Higher |
| Soybean Futures: | 1 to 3 Lower |
| Soybean Meal Futures: | $1 to $3 Lower |
| Wheat Futures: | 1 to 3 Higher |
MILK:
Class III milk futures have moved back to the levels of a week ago with November and December back above $18.00. November is running out of time to regain much of the losses, but price does look better than it did at the end of last week. Traders may exercise greater caution now that cheese prices have surged higher, potentially reducing buying interest as immediate demand is filled and prices may be higher than buyers are willing to pay. Milk production continues to slowly improve with the possibility that cow numbers may stabilize as we head toward the end of the year. Culling is expected to slow as farmers may have trimmed their herds sufficiently for the winter. Overall demand for dairy remains strong both domestically and internationally.
CHEESE:
Block cheese price has had two strong days of price increases, but price continues to remain in a sideways trading range. Price has remained in this range for nearly a year and looks like it will remain that way through the end of the year.
BUTTER:
Butter is in a strong position with good demand domestically and continued gains in exports. This combination has resulted in inventory running below year-ago levels. The current pace of butter production is not enough to fill demand requiring inventory to supplement fresh supply. Spot cream remains available, but at higher prices.
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