OPENING CALLS:
| Class III Milk Futures: | Steady to 5 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 2 Higher |
| Soybean Futures: | 3 to 5 Higher |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | Steady to 2 Higher |
MILK:
Class III milk futures tried to trend higher following increasing cheese prices last week. However, traders have been cautious over how much higher prices could move. There are reports from retailers that demand is softening. Orders may be lighter after the holiday season as regular demand kicks in. That demand may be lighter than usual, which would result in inventory increasing due to strong milk production. Underlying cash markets may coast through the end of the year as buyers and sellers may be comfortable where they are. Milk futures may trade mixed to lower into spot trading. Traders continue to trade short-term only, looking to try and take a small profit if one is available, keeping futures choppy.
CHEESE:
Only a seller of barrels showed up during spot trading Wednesday to do any business. Buyers may not be aggressive as increased cheese production is making more available to the market through regular channels. Retailers will wait to assess holiday demand before placing orders for regular demand.
BUTTER:
Increased churning activity is putting more butter on the market, meeting demand as well as beginning to build inventory. Price may have more downside potential in the near term. After holding a large discount to cash for quite some time, butter futures are nearly right in line with cash.
