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 Lower |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | Steady to 1 Lower |
| Wheat Futures: | 1 to 2 Lower |
MILK:
Class III milk futures found strength from the increase in the dry whey price. The price moved to the highest level for the year with further strength anticipated. This continues to provide support to the Class III complex. Traders may be cautious ahead of spot trading as the weakness of barrels is cause for concern. The news shows nothing for traders to take direction from. Milk production is slowly improving seasonally. Farmers are doing a good job of getting milk out of the cows. Component values have been higher than usual, improving cheese yields and increasing cream supplies. The milk supply is sufficient but not overwhelming the market.
CHEESE:
Cheese prices are expected to remain choppy as we move through the holidays and the end of the year. Buyers will be aggressive when needed and hold back once their needs are covered. Cheese inventory is lower than a year ago but current production is sufficient to meet the demand for fresh cheese. The upside price potential may be limited.
BUTTER:
The butter price is expected to remain in a range with the potential to retest the recent lows before the end of the year. Holiday orders have been met with some emphasis on contracting needs for the first quarter of 2025. Strong export demand has resulted from low prices and increased demand in the international markets. The U.S. butter price is very competitive on the world market.
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