OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Steady to 5 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Higher |
| Soybean Futures: | 8 to 12 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 1 to 3 Higher |
MILK:
There is indication milk production might be stabilizing as the wave of culling may have run its course. There have been a lot of cows culled over the past three months, as seen on the milk production reports. The availability of milk is sufficient for both bottling and manufacturing demand. Plants are running full schedules processing milk to keep up with increased holiday demand. Underlying cash prices are holding well, keeping support under futures for both now and next year. Class IV futures continue to remain significantly higher than Class III contracts.
CHEESE:
Block cheese price has not moved so far this week while barrels have been increasing, reducing the spread difference. Even though block cheese price has been steady this week, that does not mean no cheese is moving. Buyers are finding sufficient supply though other channels, eliminating the need to come to the spot market to take care of business. USDA will release the October Dairy Products report Friday afternoon, providing an indication of dairy product production for the month.
BUTTER:
Strong demand for butter should keep price near the $2.00 range through the end of the year. Buyers are not concerned over a shortage as there is sufficient inventory. However, buyers have already been looking ahead to next year and have been increasing ownership for expected first quarter demand.
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