OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 5 to 7 Lower |
| Soybean Meal Futures: | Steady to $1 Lower |
| Wheat Futures: | 1 to 3 Higher |
MILK:
Milk futures suffered pressure again yesterday with gains short-lived. As underlying cash cheese continues to chop around, milk futures erode. Further losses in cheese prices will result in nearby contracts rolling down. Underlying cash does not indicate production is slowing or that demand has improved. Export demand for cheese was higher in November but remained lower for the year. Both domestic and international demand will need to improve to provide support to the market and better milk prices. If underlying cash continues to chop around in a sideways pattern, later futures contracts will roll down.
CHEESE:
Manufacturers want to move product to limit inventory growth and buyers want to purchase product at lower prices as they see sufficient supply available. Aging programs are being replenished without the need to be aggressive. Demand is good but will need to improve before prices move higher. This is the time of year when demand generally is slower. Cash prices continue to hand off strength and weakness between blocks and barrels nearly every day as the spot market showed yesterday.
BUTTER:
Buyers and sellers seem to be comfortable with the current butter price. This may keep price moving within the range it has developed. Butter futures have little to no premium in contracts throughout the entire year.
