OPENING CALLS:
| Class III Milk Futures: | 10 to 35 Lower |
| Class IV Milk Futures: | 5 to 10 Lower |
| Butter Futures: | 1 to 2 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 1 to 2 Higher |
| Soybean Meal Futures: | $0.50 to $1.00 Higher |
| Wheat Futures: | 1 to 4 Lower |
MILK:
The September Milk Production report was released Thursday afternoon. While milk production was lower than last month, it was still well above September 2025 by 2.7%. We have a greater number of milk cows this year as well as more production per cow. The biggest states for growth were Kansas and South Dakota. The third quarter of 2026 produced 59.5 billion pounds of milk, which is 2.3% more than last year. The drop from September to October was somewhat expected, but it is well overshadowed by the big year-over-year increases we've seen nearly every Milk Production report this year.
CHEESE:
Overnight trade for cheese is weaker, trading 0.3 to 3.7 cents lower. The expectation for trade Friday is neutral given the weight the market is putting on the Cold Storage report set to be released Friday afternoon. If the spot market is any indication, inventories may be feeling pretty tight this month as buyers position themselves ahead of the holiday season.
BUTTER:
Overnight trade has been quiet, much like we expect to see in the day trade Friday. Just like cheese, the Cold Storage report will bring a lot of answers to questions on inventories for butter. The holiday baking season is around the corner and if the market feels overstocked or tight, it can make a big difference in how the futures markets trade.
