OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 2 to 5 Lower |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 2 to 3 Higher |
| Soybean Meal Futures: | $3 to $5 Higher |
| Wheat Futures: | 3 to 4 Higher |
MILK:
There is hope for further strength of the underlying cash markets to provide continued support to milk futures. However, that may be a tall order as the time for orders to be met before the holidays is running out. Most of the buying of cheese and butter will be for early next year. The current level of milk production should keep a sufficient supply of milk available for bottling and manufacturing. Bottling demand for school accounts will be slowing this week with greater volumes of milk diverted to manufacturing through the holidays. Steadily increasing milk production may leave limited upside potential for prices through the end of the year.
CHEESE:
The recent demand for fresh cheese has supported the market. Some of the support was due to increased orders to fill last-minute orders for the holidays, and some was due to low prices and buyers attempting to take advantage of those prices. That may have brought more buyers in from the sidelines as they saw prices increasing. The upside price potential may be limited due to sufficient supplies.
BUTTER:
The butter price is anticipated to see further weakness through the end of the year. Active churning and sufficient inventory leave buyers unaggressive. There is no concern over supply. The cream supply remains heavy with higher milk components adding to the supply.
