OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Steady to 5 Lower |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 4 to 7 Lower |
| Soybean Futures: | 2 to 4 Lower |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 10 to 15 Lower |
MILK:
The strong gains of Class III milk futures yesterday were impressive, supported by underlying spot cheese prices. Buyers were aggressively looking for cheese to fill orders and paid up to get it. There is sufficient milk supply available for bottling and manufacturing with plants running generally as full as they want to be. Overall milk production is good. The Senate passed legislation to avoid a rail strike. It is now headed to President Bide to sign. This will continue to move feed to areas that rely on rail. Some areas of California are getting rain as well as some good snow in the mountains now and over the next few days. Although this will not be enough, it certainly will help. Overall milk production is expected to remain strong through the end of the year and into next year.
CHEESE:
Cheese prices will continue to fluctuate as we move through December with wide swings possible. The strong gain of barrels yesterday was likely due to orders coming in that needed to be filled with buyers finding little selling interest until price moved 8 cents higher. Barrel price may see further strength today as unfilled bids from yesterday may need to be filled. Cheese output is improving, allowing for sufficient supply for demand.
BUTTER:
Butter may see further weakness today, but that weakness may be limited as demand remains good. Increasing production should begin to build inventory as much of the butter for holiday demand has been met or is in the process of being shipped. It is interesting that reports of butter featuring in retail stores that generally takes place during this time of year have been lacking. It is not a popular item to use as a loss leader this year.
