OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 4 to 10 Lower |
| Butter Futures: | 1 to 2 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 3 to 4 Lower |
| Soybean Meal Futures: | Steady to $1 Higher |
| Wheat Futures: | 9 to 11 Lower |
MILK:
Overnight activity was unusually large with contract through December actively traded. Only February through April contracts were steady to higher with some months during the second half of the year showing double-digit losses. It seems traders are intent on removing more of the premium later contracts contain as the outlook for stronger prices wanes. Milk production is expected to remain strong for a longer period than anticipated. Milk output is below year earlier levels but remains sufficient for demand as demand has not exceeded year-earlier levels. The winter storm system that will be moving across the country again this week is not expected to have much impact on production or the movement of milk. There may be some delivery delays but that is usual during the winter. It is uncertain whether it will have much impact on demand.
CHEESE:
Prices are not expected to show much of anything different than what we have seen. The market is expected to remain choppy with price increases likely limited. It is the time of year during which demand is slower and inventory builds.
BUTTER:
Price may weaken further Monday as buyers hold back due to the weakness Friday. Increased butter production will keep supply readily available for demand. This may result in price retesting the previous low price from mid-December.
