OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 2 Higher |
| Soybean Futures: | 4 to 6 Higher |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 2 to 4 Higher |
MILK:
It is the time of year during which demand for dairy is strong but spot prices slowly decline. This is due to much of the dairy products for the holidays already purchased, ready to be shipped or already shipped to various outlets. Buyers may not need to be aggressive and may purchase on weakness rather than chase the market higher. Strong milk production continues with overall weather conducive to cow comfort. Feed supplies are good, and the railroads will continue to operate, moving feed to those areas that rely on them for supply. Cow numbers are holding and increasing over a year ago with most of the increase from internal growth and not new expansions. Sufficient milk and sufficient supply of dairy products will keep price strength limited.
CHEESE:
Cheese prices were mixed last week with blocks lower and barrels higher for the week. The block/barrel spread is anticipated to move closer together but whether it will be due to strength of barrels or weakness of blocks -- or some other combination of movement -- is uncertain. Buyers may be less aggressive this week unless fill-in orders are placed that need to be filled. That will be much of what will dominate the market the rest of this month.
BUTTER:
Price is expected to remain choppy this week. If price holds near this level over the next two weeks, butter will need to increase to close the gap between it and cash, eliminating the current discount.
