OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 3 to 5 Lower |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 7 to 10 Lower |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | Mixed |
MILK:
Cheese and butter prices have not been providing support to milk futures. Any support in the market has been the result of strength of nonfat dry milk and dry whey. This support has reduced the decline of milk futures but not eliminated it. Selling pressure will remain as long as underlying cash prices show weakness. Milk production is steady at lower levels and has yet to see an increase along seasonal lines. Milk output is running above a year ago and expected to have been higher in October, but the trend growth is lacking. This has been offset by strong component prices that have improved cheese yields and cream supplies.
CHEESE:
Lower cheese prices have not increased buying interest. Sellers continue to offer loads on the spot market, leaving buyers complacent and purchasing on the weakness. As long as sellers have supplies that they want to move to limit the build of inventory, buyers will hold back. Cheese inventory is below a year ago but remains historically high.
BUTTER:
The butter price remains in a sideways range and may remain that way through the rest of the year. Inventory is higher than a year ago but not burdensome. Buyers would rather have more supply on hand as a cushion for the upcoming year. International butter prices have been increasing and may eventually support the domestic price due to increased export demand.
