OPENING CALLS:
| Class III Milk Futures: | 8 to 15 Higher |
| Class IV Milk Futures: | 4 to 8 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 6 to 8 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 3 to 5 Lower |
MILK:
It is likely milk futures will remain choppy. The strength of Class III futures will need to be supported by further gains in underlying cash or prices will fall back again. Traders will be quick to buy or sell positions based on daily cash prices rather than a price outlook. There is little anticipation over supply tightness anytime soon. Increased holiday demand will not be sufficient to tighten supply and raise prices very much. Price increases will be viewed as selling opportunities. The weather over much of the country remains good for cow comfort and will keep milk production steadily improving. The USDA will release the October Dairy Products report Wednesday afternoon showing the volume of dairy products manufactured during the month. The report is not a market-mover.
CHEESE:
There may be further strength in cheese prices Wednesday as orders are filled. However, the upside may be limited as price increases may bring sellers to the market. The current supply of cheese is not burdensome, but adequate, leaving buyers mostly purchasing on an as-needed basis.
BUTTER:
The butter price has increased for three consecutive days and may be near a level at which sellers might be more aggressive and take advantage of the higher price. Fundamentally, there is little reason for buyers to remain aggressive for an extended period.
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