OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
| Corn Futures: | 4 to 6 Lower |
| Soybean Futures: | 4 to 7 Lower |
| Soybean Meal Futures: | $2 to $4 Lower |
| Wheat Futures: | 7 to 9 Lower |
The milk market may be in trouble with the potential for lower prices unfolding. Cheese buyers have been taking advantage of a decline of price to increase ownership and to fill orders. However, they may not be as aggressive moving through the end of the year. Prices have not been able to trend other than sideways, which may indicate further upside may be limited for a time. Milk production may be higher than a year ago on the milk production report that will be released Thursday which could add further pressure on the market. There is also concern holiday demand may not be as good as usual, which would increase the potential for higher ending stocks. Overnight trading activity was confined to one contract in November. Limited interest will be shown by traders unless cash shows significant movement.
CHEESE:Prices are moving up and down with no trend developing. Buyers and sellers are taking care of business as the need arises. Sellers continue to move product to the market rather than hold onto it for a higher price that may not develop. Cheese production is steady with sufficient supply for demand. Buyers are not concerned over a supply tightness.
BUTTER:There has been a fair amount of butter already purchased by retail outlets as well as consumers. Consumers have been purchasing ahead, stocking up for the holiday season. This may slow orders as a larger amount of supply has already been moved into various areas ahead of time. There will not be a butter shortage, but high prices may reduce demand.
