OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 4 to 8 Higher |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 2 to 3 Lower |
| Soybean Meal Futures: | Steady to $1 Higher |
| Wheat Futures: | 2 to 4 Lower |
MILK:
There is little to indicate any change in price direction for milk futures. January is now the front-month contract and is trading at a discount to the end of the December contract, while Class IV futures showed a premium to the December Class IV contract. The current premium of Class IV to Class III is $4.06. The December Federal Order class prices will be released Thursday. Milk production across the country is steady to stronger, keeping sufficient supply available for bottling and manufacturing. The income over feed price for November at $9.58 results in no payment under the Dairy Margin Coverage program.
CHEESE:
Prices are expected to remain choppy and follow a similar pattern to the past few months. Price increases will be short-lived and limited. Lower prices will increase buyer interest. Buyers do not need to be aggressive as sellers want to move supply rather than pay for storage. This may limit price potential for the next few months.
BUTTER:
Price is at the level it was a month ago. With current heavier production due to plentiful cream supply, there may be limited upside potential. Buyers may not be concerned about supply and will purchase at lower prices. They will see no need to be aggressive buyers as there is no high butter usage holiday period for a few months.
