OPENING CALLS:
| Class III Milk Futures: | 2 to 5 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 1 to 2 Lower |
| Soybean Meal Futures: | $0.50 to $1 Lower |
| Wheat Futures: | 1 to 2 Higher |
MILK:
Class III milk futures through the end of the year have increased around $1.00 per cwt over the past week, supported by higher cheese prices. It is uncertain whether this is a change in trend. Historically, the market reaches its peak in October, but this year has been anything but usual. Cow numbers continue to increase, with milk production per cow significantly higher than a year ago. This has kept the milk supply sufficient for demand. Dairy farms have retained more cows to keep the barns full rather than purchasing replacement heifers at a cost of more than $4,000. It is good to see the recent strength in the market, and hopefully, we are seeing delayed seasonal strength.
CHEESE:
Cheese prices have increased for three consecutive days. Buyer interest has improved while sellers have held back. The barrel price has been increasing with no sellers showing up during spot trading. Cheese production has been slowly increasing due to an increase in milk receipts at the plant level.
BUTTER:
The butter price may be developing a sideways trading range for the time being. Buyers have been more aggressive as they take advantage of the low price. Butter production has been increasing due to increasing cream supplies.
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