OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 5 to 10 Lower |
| Butter Futures: | 1 to 2 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 3 Lower |
| Soybean Futures: | 3 to 4 Lower |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 2 to 3 Lower |
MILK:
The pressure on milk futures did not follow through in overnight trading activity. Traders may be cautious early Thursday until they see further direction from cash. Continued weakness in dry whey and nonfat dry milk is providing the greater impact on milk futures. Spot milk reported to still be as much as $10.00 below class in the Central region has been a surprise as it has remained that way for four consecutive weeks. Overall milk production is steady to increasing. California remains in a state of emergency, and it is unclear how much impact the adverse weather will have on the state. Current milk supply in the country remains sufficient for demand with many plants running on full schedules. USDA will release the December Milk Production report next week.
CHEESE:
Spot cheese trade ending the day with only offers remaining might indicate buyers will be less aggressive Thursday. With the current supply of cheese, there is little expectation for a change in trend. Buyers are not concerned over supply. This may keep prices in a range for a period. Business in being done without difficulty.
BUTTER:
Price is not expected to decline very much as lower price will bring buyers back into the market again. Some believe price will soften further and have not been anxious over contracting supply for the year. Manufacturing has plentiful cream supply allowing them to meet demand and build inventory as they look forward to Spring demand.
