OPENING CALLS:
| Class III Milk Futures: | 4 to 8 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 1 Higher |
| Soybean Futures: | 8 to 10 Lower |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | 1 to 3 Higher |
MILK:
Class III futures showed some selling pressure overnight as traders opted to take some quick profits from the market rather than guessing whether the underlying cash prices would remain supported. The current fundamentals do not suggest continued price strength for a long duration. There is no shortage of milk, but milk is not overwhelming the market. Spot milk prices are holding well for this time of year. The next few weeks may see lower spot prices as more milk will be available for processing due to schools being closed. However, manufacturing plants will absorb the extra milk without difficulty. Milk production in November is expected to have been higher than the previous year. The Milk Production report on Thursday will show the level of output for the month.
CHEESE:
The block cheese prices have increased nicely over the past two weeks, but may soon run out of strength. Once buyers have covered their current needs, there may be little interest in supporting the market at these levels. Prices are not expected to fall apart but will find a level that might increase demand.
BUTTER:
Butter is of greater concern than cheese. Inventory is higher than a year ago with some reports indicating inventory is currently increasing. This would be earlier than usual, but not unexpected due to abundant cream supplies keeping churns running on full schedules. The price is expected to revisit the recent lows before the end of the year.
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