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: | 4 to 6 Higher |
| Soybean Meal Futures: | $3 to $5 Higher |
| Wheat Futures: | 1 to 2 Higher |
MILK:
Milk futures settled back somewhat overnight despite higher cash on Friday. Trading was confined to the January and February Class III contracts. It is another holiday-shortened week, and many have limited volume Monday and Tuesday. Tuesday will be the last trading day for December futures and options with the Federal Order prices announced on Thursday. The November Agricultural Prices report will be released on Tuesday, providing most of the prices used in calculating income over feed for the Dairy Margin Coverage program. The markets will be closed on Wednesday.
CHEESE:
Cheese prices have been able to hold the recent higher prices. The lows seem to have been established as holiday demand is finished and buyers look ahead to first-quarter demand. Low prices made it attractive to purchase cheese to rebuild inventory. Prices may have limited upside potential as demand is slower during the early part of the year.
BUTTER:
The low for butter may have been established due to strong demand through the end of the year, reducing inventory significantly. This may provide support as buyers look ahead to first-quarter demand. The price may follow a similar pattern as last year with buyers purchasing on an ongoing basis to satisfy demand and to purchase ahead for contracted orders. The price is reasonable, and buyers want to take advantage of it.
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