OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Lower |
| Soybean Futures: | 4 to 6 Lower |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 9 to 11 Lower |
MILK:
Milk futures have been able to hold their gains of the past few weeks. Underlying cash has been supportive as buyers have been aggressive in the underlying cash markets. Strong buying interest may run its course at some point. Hopefully, buyers will not step back like they did a few weeks ago. November Class III milk price will again be higher than October. Much of the price is now set and should begin to flatline over the next two weeks until the Federal Order prices are announced. Wintery weather is taking a large path across the country but is not expected to impact milk production or milk hauling very much. With milk production mostly steady to slowly improving, there is sufficient supply for demand.
CHEESE:
Spot trading will set price direction. The divergence of blocks and barrels yesterday will keep traders cautious moving into spot trading today. Block cheese is in better demand as we move toward the holiday season. Higher prices for food in grocery stores may have reached a level at which consumers can no longer afford to purchase products as usual and may opt for lower-cost brands and change purchasing habits. This may impact demand to a greater degree.
BUTTER:
Price has made a substantial rebound but may be nearing a level of price resistance. However, orders will continue to be placed over and above the usual as variable demand unfolds. Increased butter production should balance the market. Spot price should follow through higher due to unfilled bids remaining yesterday.
