OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Lower |
| Soybean Futures: | 3 to 5 Lower |
| Soybean Meal Futures: | $1.20 to $1.60 Lower |
| Wheat Futures: | 4 to 5 Lower |
MILK:
Overnight trade indicates that Class III futures are running out of gas on the recent rally. It has been an impressive spike in prices starting on Oct. 1 with nearly every day closing higher on the November contract. With the Milk Production report coming Thursday, it would make sense that the market may be due for a pullback. Milk powders were the start of the Global Dairy Trade (GDT) Auction Tuesday with butter milk powder climbing 8.4% from the previous auction. Whole milk powder was up 4.4% while skim milk powder was up 3.4%.
CHEESE:
Spot market continues to bring the most excitement to the dairy market as of late. Tuesday was no exception with cheddar blocks climbing another 7 cents and barrels up 8 cents. Futures have been trailing behind but still gaining ground nearly every day this month. The GDT Auction had cheddar falling dramatically with the biggest decrease from the last auction out of all the products traded. Cheddar was down 7.4% with an average price of $3,645. Mozzarella was 1.3% higher from the previous auction.
BUTTER:
Holiday buying for butter may be the cause for the recent cash price increase as buyers step in to fulfill their needs ahead of the baking season. Prices are low, so it is a good opportunity to do so. The Cold Storage report may have the biggest impact on butter as we will get a better look on Friday at what inventories are. We know 82% butterfat butter supplies are tight but 80% is readily available.
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