OPENING CALLS:
| Class III Milk Futures: | 15 to 20 Higher |
| Class IV Milk Futures: | 4 to 8 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Higher |
| Soybean Futures: | 6 to 8 Higher |
| Soybean Meal Futures: | $4 to $5 Higher |
| Wheat Futures: | 1 to 2 Higher |
MILK:
The decline in milk production in November of 1.0% was unexpected and may change the outlook for milk prices moving into 2025. Milk production per cow declining by 23 pounds indicates the possible impact of bird flu is showing up. The bullish influence of this may be mitigated due to the time of year. Holiday demand has been filled and overall demand generally slows during the early part of the year. The long-term impact could be of greater significance. However, that may not support the market in the near term. Overnight Class III futures rebounded as anticipated due to the strength seen at the end of trading on Thursday after the markets had already been settled. Spot trading will be the key as to whether higher prices will hold.
CHEESE:
It is uncertain whether cheese buyers will step up Friday in response to the bullish implications of the milk production report. Their needs may be filled for now and limited interest in buying until lower prices are seen. Buyers and sellers of cheese are not interested in speculating on market direction. The milk from November has already been processed, stored or consumed, and has been factored into the physical market.
BUTTER:
The USDA will release the November Cold Storage report on Monday showing the inventory level of butter and other dairy products. Butter production has been strong and there have been reports that inventory has been increasing. This may not yet be reflected in the November report, but inventory is expected to have remained significantly higher than a year ago.
