OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 4 to 8 Lower |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 6 to 7 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 1 to 3 Higher |
MILK:
Bullish traders are searching for something to get excited about, but the current market shows little to fulfill that desire. Underlying cash prices show little support as the milk supply remains sufficient to maintain strong output of dairy products. Lower milk prices are not reducing milk output as farms continue to add cows to their herds. The October Milk Production report will be released on Friday, and it is expected to show an increase in cow numbers again. International dairy prices are decreasing, with the latest Global Dairy Trade auction showing a 3.0% decline in the trade-weighted average from the previous event.
CHEESE:
The barrel cheese market has been confusing, with little cash trading activity, and the price is at the bottom of the trading range it has been in since November. If the supply of barrels were tight, the price would be higher. Demand seems to be limited, leaving little reason for buyers to be aggressive. Much of the business is being done through usual channels in the country rather than on the spot market.
BUTTER:
The price may test the low again unless demand improves, and buyers need to come to the daily spot market to purchase loads to fill immediate orders. The bottom line is that there may be limited upside price potential through the end of the year.
