OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Steady to 5 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 1 lower |
| Soybean Futures: | 1 to 3 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 4 to 6 Higher |
MILK:
There just does not seem to be anything to get traders excited about in the dairy markets. Milk production is seasonally increasing. This allows for sufficient milk supply to meet the needs of both bottling and manufacturing. Buyers of cheese and butter are not concerned over supply. Dry whey and nonfat dry milk prices continue to hold in a range. Futures are expected to be choppy likely through the end of the year as they react to underlying cash trade. Traders will be cautious over any price strength as it tends to be short-lived. USDA will release the November Federal Order class prices this afternoon.
CHEESE:
The weakness of barrels yesterday does not indicate cheese prices will move lower, but that potential is there. There are some concerns prices could fall back near the lows of early July. The inability of price to increase during the holiday buying season is a cause for concern. Choppy trade may continue with traders remaining bearish overall.
BUTTER:
Buyers were looking for butter yesterday to fill orders. Unfilled bids remaining at the close could suggest further buying could push price higher until the demand is met. Price could then move back as sellers will continue to bring supply to the market rather than store it. Active butter production will continue to supply the market.
