OPENING CALLS:
| Class III Milk Futures: | 4 to 8 Lower |
| Class IV Milk Futures: | 4 to 8 Lower |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 2 to 4 Lower |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 1 to 2 Lower |
MILK:
Milk futures took a beating on Thursday and will be difficult to recover unless there is a strong gain in underlying cash. The October Milk Production report is a bearish cloud hanging over the market. The increase in cow numbers with the nation's herd above a year ago should keep sufficient milk available for demand. Milk output is slowly improving but not as quickly as usual during this time of year. However, production per cow is higher than a year ago and should remain that way for a time. Farmers are doing an excellent job at producing milk and dealing with the tight heifer supply.
CHEESE:
The reversal of cheese prices was not friendly to the market and solidified the mindset that price increases are short-lived. Most of the holiday orders are filled with some fill-in buying to continue. Contracts are being made for the first quarter of 2025 with some of the buying on the spot market for that purpose. The fresh cheese supply is sufficient for demand.
BUTTER:
Butter has been unable to find support, may erode and revisit the low price from December 2023. Retail demand has improved but is being offset by weakness in the food service industry. Butter inventory remains higher than a year ago with some reports indicating inventory is building. Lower prices should stimulate demand. International demand has been improving.
