OPENING CALLS:
| Class III Milk Futures: | 2 to 6 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | Steady to $1 Higher |
| Wheat Futures: | 2 to 4 Lower |
MILK:
Milk futures did not react very much to the milk production report Tuesday nor to the increase of spot prices. Traders are not bullish and not overly bearish at the present time. The downside might be limited unless further weakness is seen for spot prices this week. Milk checks will be lower this month and lower in the early part of next year unless demand increases, or supply tightens or both. Overall weather has been good for milk production, which keeps milk output slowly increasing. However, production is lower than a year ago, but it has not had an impact on supply. Milk futures will be choppy through the rest of the year.
CHEESE:
The slight increase of cheese prices Tuesday did not trigger buying interest. There were several unfilled bids for barrels at the end of trading Tuesday, but that may not translate into a higher price Wednesday as buyers were not aggressive. There may be interest in buying but not at higher prices.
BUTTER:
Price has had a nice increase over the past three days. Once the current buying interest is satisfied, price may drop back again. It is too early for buyers to be aggressive as the focus may be to limit inventory through the end of the year. The Cold Storage report for November will be released on Friday, which may inventory similar to a year ago.
