OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 3 to 5 Higher |
MILK:
Milk futures are not expected to see much trading activity ahead of spot trading. Traders are uncertain whether underlying cash will provide further support to the market. Higher cash prices may increase the desire for sellers to take advantage of the higher prices and offer more supply to the market, or they may hold back a while seeing that buyers have turned more aggressive. Milk production continues to increase seasonally but at a slower pace than usual. However, the components are strong, improving cheese yields and cream supply. There has been an increase in the production of specialty holiday items, but that has not impacted supply.
CHEESE:
The production of American cheese in October was lower than in October 2023. This has been a pattern over the past few months, but lower production has not supported the market. Cheese inventory is lower than a year ago but remains sufficient for demand. This leaves buyers comfortable and keeps them buying on an as-needed basis.
BUTTER:
The butter price has increased for four consecutive days and may be near the level at which sellers may become more aggressive. However, trading activity has improved, and the price has increased. Holiday demand has improved requiring buyers to be aggressive and purchase butter for immediate orders above contracted supplies.
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