OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 4 to 6 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 5 to 7 Lower |
| Soybean Meal Futures: | $0.50 to $1 lower |
| Wheat Futures: | Steady to 1 Higher |
MILK:
The September Cold Storage report was considered to be bullish on the market as cheese inventory remains significantly below a year ago. However, spot trading will dictate the level of strength or weakness of the market. Buyers have been comfortable with supplies and that may not change anytime soon. Milk production is at seasonal lows but remains slightly higher than a year ago. Milk production is expected to increase over the next weeks as cooler temperatures will improve cow comfort. Milk futures may show some buying interest this morning, but that interest might be limited until spot trading provides direction.
CHEESE:
American cheese inventory in September was down 8% from the previous year. This was the lowest monthly inventory since November 2020 and the lowest September inventory since 2020. Other cheese inventory was 7% below a year ago. This may not generate aggressive buying interest in the spot market but may provide some support limiting further downside pressure.
BUTTER:
The butter price is expected to continue to chop around as supply is sufficient for demand leaving buyers comfortable. Butter manufacturing is strong due to the plentiful cream supply. Manufacturers keep moving supply to the market to limit the growth of inventory. However, inventory is 14% above a year ago which may limit the upside price potential.
