OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Steady to 5 Lower |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Lower |
| Soybean Futures: | 8 to 12 Higher |
| Soybean Meal Futures: | $3 to $5 Higher |
| Wheat Futures: | 7 to 9 Lower |
MILK:
The substantial pressure Tuesday on milk futures will be difficult to overcome unless buyers step back into the cheese market. That may not be the case Wednesday as the weakness yesterday may keep buyers on the sideline again. Milk futures are doing the opposite of what they did a year ago. One year ago, milk prices were trending higher and continued that way until record milk prices were achieved in spring. The current market is down and may remain that way in the near term. Even if demand holds well, there is sufficient milk to meet that demand. Milk production is not expected to decrease anytime soon. Today is the last day to trade December futures and options with the December Federal Order prices to be announced Thursday. This was delayed one day due to the holiday.
CHEESE:
The drop of cheese Tuesday shook the confidence of traders over the potential of strength of cheese prices moving forward in the new year. It was only a few weeks ago that cheese prices were at this level from which they rebounded. In late August, they were quite a bit lower than they currently are. However, low prices brought in buyers to take advantage of those prices. Similar buying interest may surface again.
BUTTER:
Buyers and sellers of butter seem comfortable where they are, leaving price stable. Churning has increased making more available to the market with inventory beginning to build. Upside price potential may be limited through the first quarter of the year.
