OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Lower |
| Soybean Futures: | 8 to 12 Lower |
| Soybean Meal Futures: | $1 to $3 Lower |
| Wheat Futures: | 2 to 4 Lower |
MILK:
The outlook for milk prices certainly has improved as futures have increased substantially. Some caution has surfaced due to the weakness of barrel cheese Tuesday, but this is initially being viewed as a temporary weakness. Spot milk prices continue to remain stronger than usual during this period of time, with prices at or 50 cents above class. More milk moving to manufacturing is not creating any concern and has been welcomed by most plants allowing them to increase production. Milk production is holding despite higher feed prices and increasing costs for other goods and services. The price outlook for milk has improved immensely but that is not translating into greater profitability at this point. USDA will release the Agricultural price report for November on Friday providing numbers used to determine income over feed.
CHEESE:
Cheese is maintaining solid support overall. The weakness of barrels will keep traders guessing as to price potential as we move through the end of the year and into the first quarter. Buyers have been purchasing ahead and could eventually slow their purchases once they feel satisfied with supply.
BUTTER:
Buyers remain aggressive even at the current price level. There is a frenzy driving the market as increasing price pulls more buyers in to obtain supply before price could again go higher. Cream is becoming more available which will increase churning activity. However, current demand remains higher than production.
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