OPENING CALLS:
| Class III Milk Futures: | 2 to 5 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 3 to 4 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 6 to 8 Lower |
MILK:
Milk futures took a beating last week after the release of the milk production report. That was not the only reason as milk had already been processed, sold or consumed. It indicated to buyers that a sufficient milk supply would be available for bottling and manufacturing for the foreseeable future. October was the first month that cow numbers were above the previous year since May 2023. The surprising aspect of this is that the heifer supply has been tight. Time is running out for demand to impact the supply enough to raise prices. Much of the dairy product demand for the holidays has been shipped or delivered with only fill-in buying to dominate activity. President-elect Trump has announced Brooke Rollins, of the America First Policy Institute, as agriculture secretary.
CHEESE:
The USDA will release the October Cold Storage report Monday. It is expected to show cheese inventory significantly below a year ago. American cheese may show the largest percentage of decline compared to the previous year as American cheese production has been lower according to the monthly dairy products reports.
BUTTER:
The opposite will be true for butter inventory as it is expected to be significantly higher than a year ago. Butter output has been strong as the cream supply has been heavy. Demand has been less than anticipated with manufacturers actively selling supply to limit the increase in inventory.
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