OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Higher |
| Soybean Futures: | 1 to 2 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 2 to 4 Lower |
MILK:
Milk futures have been reluctant to decline, even though there has been substantial pressure on barrel cheese. The minor decline of blocks leaves some traders believing there will be limited downside. More milk is being diverted to manufacturing, which should allow for more cheese to be available to the market. Increasing milk supply will keep sufficient supply available for bottling and manufacturing. Many plants are running on full schedules as milk production slowly increases in much of the country. Today will be the final day to trade dairy futures and options for the week. Dairy will be closed on Friday even though other markets will be open.
CHEESE:
The October Cold Storage report was neutral with cheese stocks declining and remaining close to inventory of a year ago. Cheese stocks could close the year lower than a year ago depending on end-of-year demand. Even though stocks are large, that certainly would be positive.
BUTTER:
Butter has shown surprising resilience, nearly gaining back what was lost last week. Price might be back at a level at which buyer aggressiveness may slow. Supply is sufficient through the end of the year. Plants have increased churning to meet demand and rebuild inventory. The Cold Storage report indicates inventory is gaining on last year, but it has a long way to go with inventory still 14% below.
