OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 7 to 9 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 2 to 4 Higher |
MILK:
Class III futures were able to rebound from prices below $15.00 on Tuesday, but that does not mean a bottom has been established in the market. The bearish attitude in the market will be difficult to overcome as long as milk production remains high and manufacturers want to move supply to the spot market to limit the inventory build-up at the plant level. The Global Dairy Trade auction trade-weighted average showed an increase after nine consecutive lower trading events. However, that is not expected to influence prices anytime soon. The final prices to determine the November income over feed for the Dairy Margin Coverage program have not been released.
CHEESE:
Cheese prices are expected to remain under pressure as manufacturers want to move supplies to the spot market rather than build inventory at the plant level. As long as cheese output remains strong, prices will have limited upside potential.
BUTTER:
The butter price is at the same level as block cheese rather than the substantial premium it has been holding for a few years. Heavy cream supplies will keep the butter price low as churns will continue to operate on a full schedule. More bulk butter is being produced and frozen.
