OPENING CALLS:
| Class III Milk Futures: | 4 to 8 Lower |
| Class IV Milk Futures: | 4 to 8 Lower |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 7 to 9 Higher |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 3 to 4 Higher |
MILK:
Milk futures continued to show weakness on Thursday and in the overnight trade. The recent pattern has been strength in the overnight trade with weakness developing during the day trade. Maybe this will change with weakness overnight finding some buying interest during the day. However, this would need support from steady or higher cash prices. Ample supplies of cheese and butter have kept sellers aggressively offering it on the spot market to manage the build of inventory. Milk production is increasing seasonally but continues to increase at a slower pace. Bottling demand is steady with retail demand increasing but at a slower pace than usual.
CHEESE:
Cheese prices have yet to find support. Cheese continues to be offered on the spot market with the block price declining 11 of the past 13 days. As long as sellers remain aggressive, buyers will hold back and purchase as needed. Manufacturers are not interested in building inventory and want to move supply before the end of the year.
BUTTER:
Butter may move to a lower trading range as inventory exceeds a year ago and active churning limits the decline of inventory ahead of the holidays. Some churns are turning down cream offers as they are already running at capacity. Retain demand is increasing but fold service demand is lacking.
