OPENING CALLS:
| Class III Milk Futures: | 2 to 5 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 1 to 3 Higher |
| Soybean Meal Futures: | $0.50 to $1 Higher |
| Wheat Futures: | 1 to 2 Lower |
MILK:
There is little bullish fundamental news to provide support to the market. One has to wonder just how low prices will go until demand increases and/or supply decreases. The milk production and livestock slaughter reports indicate culling has increased. However, that could have a long-term impact on the market. Currently, milk production remains strong and significantly above a year ago. This is expected to continue into next year despite increased culling. USDA will release the November Federal Order class prices Wednesday afternoon. The trade estimates a Class III price of $17.16 and a Class IV price of $13.83.
CHEESE:
Cheese supplies are plentiful with buyers unconcerned. Prices continue to decline with both blocks and barrels falling to new lows for the year. As long as sellers continue to offer supplies to the market, buyers will hold out for lower prices.
BUTTER:
The butter price may have found stability for a brief time. The increased holiday demand may be enough to hold prices in a sideways trading range. The higher production of Class II products for the holiday season has been utilizing some cream supplies. However, once that is finished, more cream will be available for churning, resulting in higher butter output.
