OPENING CALLS:
| Class III Milk Futures: | 3 to 5 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 8 to 10 Lower |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | 6 to 8 Higher |
MILK:
Traders took the October Milk Production report in stride focusing on supply and demand rather than anticipating what may happen down the road. Milk production continues to slowly improve keeping supply readily available. Spot milk has increased in availability, which has reduced the price to as much as $2.50 below class. The market certainly is not tight, which is keeping buyers of dairy products complacent. Much of the demand for the holidays has been accounted for with always some fill in orders to be covered. Cheese and butter prices are low, but that has not triggered any aggressive buying as end users see no need to be concerned over supply. Manufacturers want to move production quickly rather than hold for higher prices that may not develop for a while. USDA will release the October Livestock Slaughter report which will provide information on the level of dairy cattle culling for the month. Today is the final day to trade dairy futures and options for the week. Dairy markets will be closed on Friday.
CHEESE:
There could be further weakness in barrels today if sellers want to move supply. The lower bids on Tuesday indicated willing buyers, but only at lower prices. The October Cold Storage report will be released today and is expected to show cheese inventory above a year ago.
BUTTER:
Price is expected to have limited upside potential. Once the current buying interest is satisfied, the price may settle back. If October inventory is higher than a year ago, it may put further pressure on price. Cream supply is plentiful keeping churning active.
