OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | Steady to 2 Lower |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 1 to 3 Higher |
MILK:
Class III milk futures rebounded from the lower end of the trading range as cheese prices increased. However, there was no follow through overnight. Prices may have limited upside potential while underlying cash remains choppy. Overall milk production is termed as steady having surpassed the low levels of the year. Production should slowly improve as cooler weather impacts feed intake and cow comfort. The World Agricultural Supply and Demand report showed estimates for higher milk prices from the previous report, but estimated prices are substantially lower next year than estimated for this year. Hopefully, the cost of production will decline as well. However, the report was friendly for grain prices which could tighten income over feed further. Milk futures are expected to remain choppy
CHEESE:
Cheese buyers needed to obtain product yesterday with more aggressive buying. Even though prices increased, there is sufficient supply to meet demand. This may keep prices fluctuating within a range for much of the rest of the month. The inability of price to trend higher during this time of year is concerning indicating sufficient supply for demand. Prices could come under pressure once much of the early holiday buying is finished.
BUTTER:
Price is expected to continue to hold as demand remains good and supplies are lower than last year. More cream is becoming available as ice cream production slows. However, Class II product production has increased by utilizing some of the extra cream.
