OPENING CALLS:
| Class III Milk Futures: | 5 to 15 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 3 Higher |
| Soybean Futures: | 4 to 6 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 4 to 6 Higher |
MILK:
The strength of milk futures was welcomed on Tuesday as the increase in both categories of cheese triggered short covering. This continued overnight as buyers could be more aggressive if orders for cheese ahead of the holidays are above expectations. There has been no significant change in market fundamentals recently with this strength possibly being short-lived. That has been the pattern, but that pattern will not continue forever. The weather has been good for milk production. Production has been lower than a year ago. but still is holding in line with demand. Bottlers and manufacturers are not concerned over supply.
CHEESE:
Cheese could see further buying during spot trading today if more buyers step into the market. The unfilled bids and offers at the end of yesterday did not suggest buyers have turned very aggressive. The activity might have been to fill orders that were received above what has been anticipated.
BUTTER:
Further selling pressure might surface during spot trading as the weakness yesterday may cause buyers to step back and sellers to step up. Sellers may want to sell at the higher price to move supply that they have been holding back as the price increased. Much of the demand for butter for the holidays has been met which may limit upside price potential.
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