OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 3 to 5 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 2 to 4 Lower |
MILK:
November milk checks will be a little lower in most cases than was seen for October. This will tighten finances further. However, there have been reports of several expansions in some areas that are taking place as cows continue to shift and some processors have capacity. Culling has not increased as much as anticipated, but rather cows are moving from farm to farm. Some processing facilities have strict limitations on milk production increases while others seem to allow milk production to move from farm to farm and have the capacity to handle an increase of milk. Milk output continues to increase seasonally along with increasing components. USDA will release the October Agricultural Price report providing the numbers used in calculating income over feed for the Dairy Margin Coverage program.
CHEESE:
Barrel cheese price not being able to hold the high during spot trading yesterday could result in price slipping back today. The is little reason for cheese prices to trend higher in the near term as supply is sufficient for demand and buyers are not concerned over product availability.
BUTTER:
Price has increased 2 consecutive days moving to a level at which sellers may become more aggressive. No sellers showed up for spot trading yesterday. Once the current buyer interest is satisfied, price may drop back again. Most holiday demand has been fulfilled or is in the process of being shipped. Limited upside potential is expected.
