OPENING CALLS:
| Class III Milk Futures: | Steady to 6 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 2 to 3 Lower |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 5 to 7 Lower |
MILK:
Class III futures were under further pressure overnight as traders do not anticipate much upside price potential moving through the week. A bounce of milk futures certainly would be welcomed but may be difficult to achieve. Any increase in underlying cash most likely will be met with skepticism and limited buying interest. Milk is sufficient for all areas of demand with more milk being available for manufacturing through the holiday period. USDA will release the November Milk Production report Monday afternoon. I estimate milk production to be down 0.4% from a year ago with cow numbers down 3,000 head from October.
CHEESE:
Cheese prices may show further weakness Monday as sellers may want to move product ahead of the end of the year. Buyers are not purchasing for the holiday season anymore but are looking ahead into next year with contracts being made or orders already being filled. Buying is being done to rebuild aging programs, but only at lower prices. Barrel price is near falling back to July price levels.
BUTTER:
Price is expected to continue to chop around but decrease further through the end of the year. Current production is sufficient for demand. Inventory may end the year like the level of last year. Churning is active but lighter due to the demand for cream from Class II production for the holidays. However, that will slow as much of the holiday demand has been filled, leaving more available for churning.
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