OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 2 to 4 Lower |
MILK:
Support remains elusive in milk futures due to the weakness of underlying cash. There is little to change that the current market sentiment as supply is readily available for demand. There needs to consistent buying interest in cheese and butter for traders to buy milk futures. Traders continue to confine their activity to scalping the market to take a quick profit if they can and are not establishing long term positions. The USDA issued the final decision on amendments to the uniform pricing formulas that have been in discussion for quite some time. There will be a producer referendum on these amendments with ballots to be mailed. Ballots must be postmarked by Dec. 31 to be counted.
CHEESE:
Cheese prices continue to struggle. Buyers are purchasing on an as-needed basis rather than buying ahead for future demand. Aging programs are being rebuilt but are being done without having to chase the market higher. The current level of cheese production leaves sufficient supply available to the market and sellers offering it to keep inventory from building.
BUTTER:
The butter price fell to the lowest level since Jan. 24 in a brutal decline since early September which has now eliminated the gains of the first eight months of the year. Butter production is strong with most plants running at capacity due to the heavy cream supply. There is little anticipation of a change in trend anytime soon.
