OPENING CALLS:
| Class III Milk Futures: | 3 to 8 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | 3 to 4 Higher |
MILK:
Class III milk futures have developed a wide sideways trading pattern since early September in the December contract but continue to see pressure in later contracts. Strong milk production and increasing cow numbers are not providing long-term support. USDA will release the October Milk Production report on Friday, with traders anticipating continued strong milk production and higher cow numbers. This may be a greater concern after the holiday demand is finished. We have not had a monthly inventory report since the government shutdown, leaving uncertainty about whether inventories have been decreasing as usual. A report is expected to be released next week, but its contents are uncertain. It should be the report for October inventory, but we have not had one for September.
CHEESE:
Prices are expected to continue to chop around with uncertain price direction. Buyers and sellers are doing business as they need to without having to be aggressive either way. The recent decline in blocks below the trading range does not bode well for the market.
BUTTER:
The butter price may stair-step higher moving into and through the holiday season as demand has been improving. Cream available for butter production has tightened somewhat due to increased demand from Class II product manufacturers as they have increased production for the holiday season.
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