OPENING CALLS:
| Class III Milk Futures: | 3 to 10 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 2 to 5 Higher |
| Soybean Meal Futures: | $4 to $6 Lower |
| Wheat Futures: | 2 to 3 Lower |
MILK:
It was a rough last half of last week which will make it more difficult to overcome. Strength in the dairy complex has not taken place as it generally does over the past few months as holiday buying supports prices. Without that taking place this year, it is unlikely prices will move much higher through the end of the year. Prices remaining low might increase culling and impact milk output, but that may take a little time to unfold as farms are content with current cow numbers. USDA will release the October Milk Production report today. I estimate milk production to be near steady with a year ago. I estimate cow numbers to be up 2,000 head from September. It is a short trading week with the dairy markets being closed Thursday and Friday.
CHEESE:
There is not much anticipation of a price rebound as fundamentals do not suggest a change anytime soon. Much of the holiday buying has been completed with fill-in demand needing to be met as it unfolds. Buyers of cheese have not had to be aggressive as sellers continue to move product as quickly as possible. This may continue through the end of the year.
BUTTER:
It would seem butter price may be at the lows after the large decline on Friday. However, many times the market overcorrects before price stabilizes. High price does not appear to have impacted demand. It is a matter of sufficient supply for demand with churning increasing.
