OPENING CALLS:
| Class III Milk Futures: | 4 to 10 Lower |
| Class IV Milk Futures: | 5 to 10 Lower |
| Butter Futures: | 1 to 2 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 10 to 14 Higher |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 3 to 5 Lower |
MILK:
There is little expectation for milk futures price strength. The holidays are approaching and there is little aggressive buying interest for dairy products due to sufficient supplies readily available. Premium being carried in futures may erode as traders may see little reason to keep it. They may view the higher prices in later contracts as a selling opportunity. Milk production is steady and increasing, leaving sufficient supply for bottling and manufacturing. Cow numbers may remain steady through the end of the year. Milk futures may remain under pressure Monday morning ahead of cash.
CHEESE:
Sellers of cheese continue to offer supply on the spot market. Buyers continue to bid at lower prices and eventually purchase what they need. Manufacturing plants do not want to build inventory and would rather move it as quickly as possible. Exports remain below a year ago and not supportive to the market. A bounce in prices could take place but the gain will be limited.
BUTTER:
Further erosion of price is expected with buyers purchasing on the way down. The high price ran its course with buyers now holding back as much of the needs for the holidays may have been purchased. The market is similar to a year ago after price fell back from its' high. Butter output is increasing with more cream available for churning.
