OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Higher |
| Soybean Futures: | 2 to 4 Higher |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | Mixed |
MILK:
Even though there was stability and minor strength in the spot complex Tuesday, milk futures closed lower. The uncertainty surrounding the general completion of holiday buying and cheese inventory significantly higher than last year, keeps traders cautious. There is sufficient milk supply available to meet demand at present. However, there is concern over potential tighter supply if culling and milk production per cow continues to decline. It is getting tough out there at the farm level due to the high prices of goods and services. Milk futures may see some pressure prior to spot trading in anticipation of limited cash trading prior to the holiday. Wednesday is the lasts day to trade dairy futures and options for the week. Dairy markets will be closed Thursday and Friday.
CHEESE:
Price potential is uncertain through the end of the year. It will depend on whether fill-in orders for the holidays are placed and whether orders for early next year increase as buyers look ahead and place orders early to make sure they receive product in a timely manner. The just-in-time mentality has changed with buyers looking further ahead to assure product is received on time.
BUTTER:
Butter price is expected to hover around this level for a period of time. Most purchases have been made and shipped for the holiday period. Forward contracting is being done for early next year as buyers see little reason for price to weaken anytime soon. Current production needs to be supplemented with inventory to meet demand.
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