OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 5 to 10 Lower |
| Butter Futures: | 2 to 3 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 4 Lower |
| Soybean Futures: | 10 to 12 Lower |
| Soybean Meal Futures: | $6 to $8 Lower |
| Wheat Futures: | 8 to 10 Lower |
MILK:
Overnight trade in Class III futures was mixed. Class IV futures showed activity in the January through March contracts. This is unusual for overnight trade as generally Class IV does not trade during the night. The weakness of cheese and butter on Tuesday keeps the market in a bearish posture. Price premium is slowly being removed from later futures as underlying cash prices continue to remain choppy. Holiday demand is generally finished with orders shipped or ready to be shipped. Retailers may hold back and wait to see the level of demand before placing further orders for after the holidays. Overall demand for dairy has been good, but not exceptional. Milk production is seasonally increasing, and weather is good for cow comfort. There is sufficient milk for all bottling and manufacturing needs. Farms report cows are doing well and milk production is good.
CHEESE:
Cheese prices show no consistent strength as buyers and sellers are doing business as needed. Buyers remain unaggressive due to plentiful supply. Sellers want to move product quickly rather than hold onto it and lose money paying for storage. Price increases continue to be temporary and generally the result of immediate orders needing to be filled.
BUTTER:
The decline in butter Tuesday moved price back down to the low of Nov. 27. If price declines more than another penny, it will be back to a level last seen in July. Holiday buying is finished with demand likely filled through the end of the year.
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