OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 5 to 10 Lower |
| Butter Futures: | 1 to 2 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 1 Higher |
| Soybean Futures: | 3 to 5 Higher |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 3 to 5 Lower |
MILK:
Class III milk futures have exhibited some strength over the past two days, providing some hope that prices will increase through the holiday season. However, price increases have been short-lived, and this may be no exception. Demand will not increase sufficiently to tighten the market during the rest of the year. Most holiday orders have been shipped and filled leaving fill-in buying much of what will be done. Milk production is slowly increasing but at a pace that is slower than usual. Nevertheless, there is sufficient milk available for bottling and manufacturing needs. Wednesday is the last day to trade dairy futures and options for the week. Markets will be closed on Thursday for Thanksgiving. Dairy futures, options and spot trading will be closed on Friday.
CHEESE:
Tuesday's steady spot cheese prices were not viewed as bearish for the market. The strength of dry whey supported Class III futures with the price moving to a new high for the year. Further strength is expected for dry whey through the end of the year. Sellers of cheese and the spot market may hold back in as buyers may turn more aggressive if they need to fill orders that will be placed over and above what has been contracted.
BUTTER:
This is no indication as to the level at which the butter price may find support. It is a buyer's market with purchases made at continued lower prices. The price could reach last year's lows before support might be found. Churning is active keeping sufficient supply available for demand.
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