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: | 2 to 4 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 2 to 4 Lower |
MILK:
Trading activity in milk futures is expected to be light again today. Limited movement in the underlying cash will keep traders complacent. Traders that have been scalping the market for a quick profit may remain sidelined as they see limited opportunity for price movement. The milk supply is abundant for processing as schools are closed and milk is diverted to manufacturing facilities. Milk production continues to increase seasonally and due to good weather. Milk production is lower than a year ago but demand has been lighter than anticipated leaving the market balanced and prices at the current levels.
CHEESE:
Cheese prices are not expected to move very much today or through the end of the year. Buyers and sellers are comfortable at current prices. More milk is available for manufacturers through the holiday season with more fresh cheese available to the market. Buyers may not be aggressive as supply is sufficient and demand tends to slow during the first part of the year.
BUTTER:
Butter price is expected to drift through the end of the year. The large decline in inventory in November should provide support to the price and limit the downside. It may be too early for buyers to turn more aggressive as they have already been preparing for expected first-quarter needs.
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