OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 1 Lower |
| Soybean Futures: | 1 to 3 Lower |
| Soybean Meal Futures: | $2 to $4 Lower |
| Wheat Futures: | 3 to 5 Lower |
MILK:
Milk futures are expected to drift this morning as traders will wait for direction from underlying cash. However, whichever direction cash moves, it may have limited impact as traders anticipate a continued choppy market. Milder winter weather will allow for milk production to improve again and potentially slowly trend higher. Milk futures are expected to roll down in nearby months if underlying cash remains in a sideways pattern. The January contract is priced by the trade and will see limited price movement until the Federal Order prices are released on January 31.
CHEESE:
Prices are expected to remain choppy with limited upside potential for the foreseeable future. Cheese production is sufficient for demand, leaving buyers less aggressive in the cash market. Manufacturers have been moving cheese to the market to limit inventory build which could keep supply in line with a year ago.
BUTTER:
Butter price has been holding at a higher level on in a wider price range than a year ago. However, with strong churning activity and plentiful cream supply, price may eventually drop back to the levels of a year ago.
