OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 4 to 8 Higher |
| Butter Futures: | Steady to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 8 to 10 Higher |
| Soybean Meal Futures: | 2 to 3 Higher |
| Wheat Futures: | 4 to 5 Higher |
MILK:
Milk futures may struggle to recover from the losses incurred after the belated release of the September Milk Production report. The large increase in cow numbers was a surprise, but it was the reason for the strong increase in milk production. Traders may be unwilling to buy into the market aggressively this week due to the release of the October Milk Production report on Friday. A further increase in cow numbers in October is certainly possible. The weather has been good for cow comfort and strong milk production. Processing plants are receiving sufficient milk to satisfy demand.
CHEESE:
The block cheese price falling below the trading range it has been in over the past year does not bode well for the price for the rest of the year. Price fell back to the lowest level it had been since April 12, 2024. The barrel price remains in the range but may test the low soon.
BUTTER:
The price had a nice rebound last week, but it is uncertain whether it will hold. Retail demand is improving, but that may not be enough to provide continued support. It is possible the market may have been overdone to the downside as buyers had held off too long. The price may be correcting to move closer in line with fundamentals.
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