OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 5 to 8 Higher |
| Soybean Meal Futures: | $3 to $4 Higher |
| Wheat Futures: | 3 to 5 Higher |
MILK:
Class III milk futures continue to fall with underlying cash cheese prices unable to find support. The April, May and June contracts closed below $19.00 for the first time since early September. The weakness does not predict well for prices through the end of the year. Any price bounce will be viewed as having limited upside potential. The trading volume in the December contract was unusually high overnight with 60 contracts traded and the price down 2 cents. Some processing facilities report that their milk supply is tight and would like to see milk receipts increase sooner rather than later. Milk production has not rebounded much even though the weather has improved cow comfort. However, component values have been higher than usual, increasing cheese yields and cream supplies.
CHEESE:
There is no indication cheese prices have found a bottom. Lower prices are not finding strong buying interest. Cheese demand is improving at the retail level but remains below the level of a year ago. Buyers are not concerned about the current supply, leaving them complacent.
BUTTER:
The butter price is holding with buyers and sellers comfortable at the current level. Buyers have not been aggressive as further price weakness is anticipated after holiday demand is filled. The price is expected to remain in a sideway pattern for now and maybe through the end of the year.
