OPENING CALLS:
| Class III Milk Futures: | 4 to 8 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | 1 to 3 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 4 Lower |
| Soybean Futures: | 3 to 5 Lower |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | 6 to 8 Lower |
MILK:
Milk futures posted strong gains on Thursday with Class III futures seemingly supported more by the large increase in the butter price rather than cheese prices. The gain of blocks and the decline of barrels offset each other leaving little reason for Class III contracts to rally. The bearish implication of the milk production report did not have much influence on the market. The bearish implications of reduced dairy cattle slaughter in December as reported on the Livestock Slaughter report did not have any impact on overnight trading activity. Class IV futures may see some follow-through buying on the heels of Thursday's strength.
CHEESE:
Block price increasing after two days of price holding steady was certainly a positive sign for traders. However, the choppy pattern of cheese prices may remain with limited upside price potential. Cheese supply is sufficient for demand, leaving buyers complacent.
BUTTER:
Buyers were aggressive on Thursday and may remain that way today as immediate orders may need to be filled. However, the higher price may increase the interest of manufacturers to move supply. There is no shortage of butter and churning is active.
