OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 3 to 4 Lower |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 3 to 4 Lower |
MILK:
Not much movement is expected in the cash market as buyers and sellers are accomplishing business without being aggressive. Trading activity in milk futures may be a combination of short covering due to the significant weakness this week and the uncertainty over what the October Milk Production report will show today. The market saw significant pressure from the September report and will again face this report two weeks later. I estimate milk production to be up 3.6% from the previous year, with cow numbers increasing 18,000 head from September. This may already be factored into the market. There is concern as to how low milk prices will need to go before culling increases, resulting in decreasing cow numbers. The Dairy Product report will be released this afternoon.
CHEESE:
Cheese prices are not expected to fall apart, but neither are they expected to increase anytime soon. We have not been able to see what inventory has been doing or what exports have been doing, leaving the industry at a disadvantage. There will be no Cold Storage report until Dec. 23, when both the October and November reports will be released.
BUTTER:
The market is struggling and unable to find consistent support. Retail demand has improved, but it has not been enough to tighten the supply. Churns continue to run on full schedules, operating seven days a week.
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