OPENING CALLS:
| Class III Milk Futures: | 3 to 10 Lower |
| Class IV Milk Futures: | 4 to 8 Lower |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Lower |
| Soybean Futures: | 8 to 11 Lower |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | Mixed |
MILK:
Class III milk futures turned negative last week, eliminating half of their gains from the second half of October. The weakness in butter and cheese spot prices on Monday may continue to erode prices. In overnight trading activity, November futures have declined below $17.00. This puts all contracts through May below $17.00, dimming the price outlook for next year. Hopefully, the lower prices will be reflected in the retail market and stimulate demand through the holiday season.
CHEESE:
The block cheese price may retest the low of the price range it has been in since November 2024. This has been the longest spot cheese prices have been in a sideways trading range. The price swings from high to low have been significant, but the overall trend has been sideways. This is not expected to change anytime soon.
BUTTER:
The price may retest the lows, but the market has developed a tight sideways priced range. This may indicate the market is finding support at this level. Lower retail prices are increasing demand, which should keep supply moving. This may be the level the market may remain through the end of the year.
