OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
| Corn Futures: | 2 to 5 Higher |
| Soybean Futures: | 15 to 20 Lower |
| Soybean Meal Futures: | $6 to $8 Lower |
| Wheat Futures: | 10 to 14 Higher |
Choppy underlying cash last week resulted in lower milk futures. Cash is expected to move similarly this week as the market heads toward the end of the year. Underlying cash markets are not trending other than sideways for cheese and more erratic for butter. Milk production has not changed much with weather generally good for cow comfort. Feed quality is good with trains continuing to move grain where it needs to be. For those who have not been able to sign up for the Dairy Margin Coverage program, it has been extended. You have until Jan. 31 to sign up.
CHEESE:The erratic price movement of cheese is expected to continue through the end of the month and buyers step in when they need to fill orders and then step back when they do not. Much of the needs for the holidays have already been met with product moved to retail and food service. Ongoing regular demand will continue. However, there is concern over the level of demand that will be seen early next year due to consumers having less disposable income.
BUTTER:The wild swings of butter during the second half of last week may continue as price may reluctantly decline. A drop in price will bring buyers back into the market as they are positioning themselves for the first quarter of next year. Increasing churning is slowly putting more butter on the market, which could move buyers to become less aggressive.
