OPENING CALLS:
| Class III Milk Futures: | Steady to 5 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 5 to 7 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 6 to 8 Lower |
MILK:
Traders may hold some optimism over the potential for further upside in futures Wednesday. The number of unfilled bids for barrels remaining at the close of spot trading Tuesday, with price moving higher, may increase the buying interest in barrels during spot trading. However, underlying cash is expected to remain choppy. There is some anticipation that milk production may tighten early next year as low milk prices will take a toll. This would be the normal reaction to low prices, but that reaction may be slower to develop this time as farms push milk production to maintain cash flow rather than cull cows heavily. Demand will be the key to better milk prices.
CHEESE:
It will be interesting to see if buyers of barrel cheese will be more aggressive Wednesday or if they will just hold lower bids in the hopes that sellers will want to move supply before the end of the year. The inability of blocks to hold gains Tuesday may keep upside price potential limited. More milk continues to move to manufacturing as schools remain closed.
BUTTER:
It is uncertain whether butter price will see much strength this week or even early next year. Higher inventory and active churning leaves sufficient supply for demand. Price may move into a similar sideways pattern to last year as supply and demand remain balanced.
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