OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 5 to 8 Higher |
| Soybean Meal Futures: | $1 to $3 Higher |
| Wheat Futures: | 2 to 4 Higher |
MILK:
Nearby milk futures are under pressure due to the weakness of cheese. Later contracts are holding as there is anticipation for greater strength as time progresses. That is an accurate assumption based on what we have seen the past few months on the Milk Production reports as culling has been heavy and milk per cow has been decreasing. Prices for goods and services on the farm have been, soaring reducing profitability. Yet on the other side of the spectrum, inventory is higher than last year. Exports have been strong but are now having greater difficulty being shipped out to satisfy strong world demand. With the potential for higher milk prices next year as seen in futures, culling is expected to slow with farmers possibly beginning to look at adding cows again. There remains a lot of uncertainty surrounding the market next year.
CHEESE:
The void that developed under cheese prices is larger than expected with prices still not finding a level of support. One would think buyers would have stepped back up to the plate again after the significant decline of the past three days, but such has not been the case. There were only offers posted Tuesday with no buyers showing up. This could indicate further weakness may be seen Wednesday.
BUTTER:
Price is comfortable for both buyers and sellers and in relationship with supply and demand. Buyers may not be willing to push price higher but may be willing to purchase on any price weakness. Demand has been strong, but much of the purchasing for the holidays may be finished. It will be up to regular ongoing demand to support price.
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