OPENING CALLS:
| Class III Milk Futures: | Steady to 5 Lower |
| Class IV Milk Futures: | 4 to 6 Lower |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 3 to 4 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | Mixed |
MILK:
The November Milk Production report was bearish. There was nothing in it to give any indication of light at the end of the tunnel. Strong milk output per cow and higher cow numbers are not going to change anytime soon. Farmers are intent on pushing milk production to make up for lower milk prices, and they are retaining cows to do it. Reasonable feed prices and high calf prices continue to maintain overall profitability for many dairies. This does not indicate that this will change anytime soon. The overall weather has been good for maintaining strong milk output. There were only four of the top 24 states that showed a decrease in milk production in Movember. Washington showed a decline of 6.6%, followed by New Mexico, down 2.8%; Pennsylvania, down 1.1%; and Virginia, down 0.9%. USDA will release the Cold Storage report Tuesday, which should bring the report current.
CHEESE:
There is little expectation cheese prices will find support in the near term. Increased cheese production keeps plants moving cheese to the spot market at lower prices rather than building plant inventories.
BUTTER:
The butter price remains under pressure due to high production and reduced demand for the food service industry. Retail demand has been strong, but not strong enough to tighten the supply. Butterfat exports in September remained very strong, totaling 8,817 metric tons and 100.9% above a year ago. But that has not been sufficient to support the price
