OPENING CALLS:
| Class III Milk Futures: | 8 to 13 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | 0.5 to 1.5 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 3 to 4 Lower |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | 5 to 10 Lower |
MILK:
Class III milk futures have been on a big run higher this week. Since Friday's (Oct. 9) settlement, the November contract has climbed $1.15. Thursday, we saw a big start to the day with futures slowly pulling back by the final bell. The speed at which the market has rallied makes sense that we could be due for a small setback during Friday's trade. Class III futures started the night down 11 to 16 cents. By morning, futures were mixed from 15 cents lower to 6 cents higher. Nonfat dry milk has struggled midweek. After the spot market denied reaching new record highs, pressure set in and sellers took over letting product or positions go. This has weighed heavily on Class IV futures.
CHEESE:
What a day cheese had in the spot market Thursday. Blocks launched 12.25 cents higher while barrels finally decided to join in on the fun and rallied 11.75 cents. Holiday buying is the most likely cause for the sudden interest in cheese. Much like many other dairy products, futures rallied early on into midday but lost ground by the afternoon. Overnights are trading 0.2 to 1.3 cents lower.
BUTTER:
Butter has been less flashy about its rally this week as it has been overshadowed by cheese and dry whey momentum. The strength has been impressive in the face of high cream volumes available. Most likely, buyers are looking at the calendar and the shrinking 82% butterfat butter and are done waiting for a better opportunity to get needs bought.
