OPENING CALLS:
| Class III Milk Futures: | 10 to 20 Higher |
| 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 futures lagged underlying cash last week posting moderate gains. Traders realized over the extended weekend that more premium needed to be put into nearby contracts. Overnight trade was active with an usually large volume of trades taking place and prices higher. January showed 93 contracts traded and price 4 cents higher. February had 45 contracts traded with price 26 cents higher. March also had 45 contracts traded with price 27 cents higher. Current bids point to even higher prices as they are above the last trading price. It will be interesting to see what spot trading will show during this holiday week. Cheese buyers may not be aggressive with purchases to rebuild aging programs due to uncertainty over first quarter demand. Cheese plants are handling increased milk supply as bottlers are diverting milk which is making more cheese available to the market. Milk production shows no sign of slowing down.
CHEESE:
Cheese plants are receiving higher volumes of milk during the holiday period with access to spot milk that is running as much as $10.00 below class. The rebound of cheese last week may have run its course if previous patterns are followed. Sellers might be more aggressive this week as they desire to move production before the end of the year.
BUTTER:
It is uncertain whether cash has found support after the large decline last week. There were no butter futures traded overnight with bids and offers placed on both sides of Friday's closing prices. Traders may be apprehensive to do business ahead of spot trading.
