OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 8 to 10 Lower |
MILK:
Milk futures continue to hold strength as we move through the month of December. Milk supply is sufficient to meet both bottling and manufacturing demand. More milk will be moving to manufacturing next week as bottling for school accounts will drop off. The extra milk for manufacturing will not overwhelm the market as plants are not running at capacity. Some plants will welcome the extra supply as spot milk prices remain historically high. Higher output of cheese over the holiday period could result in buyers of cheese become less aggressive, but it will allow them to purchase more for expected demand early next year. Trading activity will be light prior to spot trading.
CHEESE:
Cheese prices are slowly moving higher with buyers needing to purchase supply to fill orders and to increase ownership for first quarter demand. There is also some buying to replenish aging programs that have been reduced due to holiday demand. Overall cheese production remains strong with plants welcoming the potential for more milk becoming available during the holidays as bottlers divert school account milk.
BUTTER:
Butter may be at a level at which buyers and sellers are comfortable. It is possible price may hold near the current level through the end of the year. Demand has been strong and the Cold Storage report to be released next week is expected to show a further reduction of inventory during November.
