OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 4 to 6 Lower |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 1 Lower |
| Soybean Futures: | 2 to 4 Lower |
| Soybean Meal Futures: | $2 to $4 Lower |
| Wheat Futures: | 2 to 4 Higher |
MILK:
Class III milk futures continue to struggle as underlying cheese prices show limited upside potential. Price increases continue to be short lived and may remain that way for a time. Retail demand has been holding well for cheddar cheeses while specialty cheeses are seeing a decrease in demand. Food service demand has slowed as increasing prices reduce the frequency of consumers eating away from home. Even with tight margins on farms or no margins, milk production continues to hold well, albeit below year ago levels. Sufficient milk continues to be produced for both bottling and manufacturing demand. USDA will release the November Dairy Products report Friday afternoon, showing the level of dairy product production for the month. There will be no Dairy Revenue Protection prices released due to the report.
CHEESE:
Prices are expected to remain choppy with upside price potential limited. Price dips will be viewed as buying opportunities. The large number of unfilled bids in barrels dried up, leaving the market vulnerable to weakness if sellers are aggressive.
BUTTER:
Butter is expected to see further price weakness today as the weakness Thursday may cause buyers to step back to see how aggressive sellers will be. Active churning and plentiful cream supply will keep supply readily available to the market.
