OPENING CALLS:
| Class III Milk Futures: | Steady to 5 Lower |
| Class IV Milk Futures: | Steady to 5 Lower |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 4 to 5 Lower |
| Soybean Futures: | 10 to 14 Lower |
| Soybean Meal Futures: | $4 to $7 Lower |
| Wheat Futures: | 4 to 7 Lower |
MILK:
Milk futures took a beating last week due to cash weakness. It is difficult to guess price strength or weakness this week. However, fundamentals do not suggest a tight market. Milk production continue to remain sufficient for demand and then some with spot milk continuing to hold a substantial discount to cash. Weather remains conducive for cow comfort and good feed intake. Milk production is holding above a year ago according to reports. USDA will release the December Milk Production report on Wednesday. Overnight trading was more active than usual with trading confined to February, March, and April and then one trade each in November and December. Closer months traded higher early but then fell back into negative territory.
CHEESE:
Cheese was under substantial pressure last week which could continue this week. Buyers have no reason to purchase cheese aggressively due to weakness and increasing supply. Demand is variable depending on variety and location, but it has slowed overall. Strong cheese output keeps sufficient supply available.
BUTTER:
Price may see further weakness this week as business in being done and churning is active. Buyers have been purchasing supply for first quarter needs but have shown little interest in aggressively forward contracting There is anticipation of further price weakness leaving buyer mostly on the sidelines.
