OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Steady to 5 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 5 Higher |
| Soybean Futures: | 5 to 12 Higher |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 2 to 4 Higher |
MILK:
Milk futures continue to find support from strong underlying cash prices. Any weakness is short-lived. Buyers have not yet reached a threshold. Milk production is good throughout the country with steady to slightly better production per cow offsetting some of the decline of cow numbers. It is unclear whether culling is slowing down as milk prices are increasing. The November slaughter report indicated that was taking place, yet the milk production report indicated it was continuing. December reports should provide a clearer picture of what is taking place. The Global Dairy Trade auction is taking place Tuesday and will provide indication of world prices. Tuesday is the final day to trade December futures and options with the Federal Order prices to be announced Wednesday.
CHEESE:
Cheese prices may be taking a breather as buyers assess end-of-the-year demand. There has been purchasing ahead for the first quarter in anticipation of demand. Now, buyers may reduce some of their aggressiveness if they feel they are comfortable with their current level of ownership.
BUTTER:
There is no sign of buyer resistance of butter. Buyers continue to look for supply for expected demand as well as build inventory. They would rather pay storage costs rather than be short of product if demand remains strong. Cream is more available to churns, which should loosen supply and rebuild inventory over time.
