OPENING CALLS:
| Class III Milk Futures: | 2 to 5 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 3 to 5 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | Mixed |
MILK:
The major reports are behind us for another month and have been factored into the market. It will be up to demand to provide market direction. Buyers of butter and cheese may hold back to assess demand through the holidays before deciding whether they need to be more aggressive. Spot milk is expected to be available at lower prices as schools are closed and some plants will run on reduced schedules. However, the milk will need to find a home and be processed. Milk production will remain steady with weather across much of the country conducive for cow comfort and milk production. Trading activity in milk futures is expected to be light. The markets will close at 12:05 p.m. CST Tuesday and will reopen at 5 p.m. CST Wednesday evening.
CHEESE:
There is not much price movement expected in the spot cheese market Tuesday. The November Cold Storage report showed a seasonal decline in inventory, but the decline was lighter than usual. American, other cheese and total cheese inventory was 7-8% below a year ago with Italian-type cheese increasing from October and was 13% above a year ago. Much of this was expected.
BUTTER:
The substantial decline in butter inventory in November may limit the downside of price moving forward. Strong butter production has been absorbed. Cream supplies have been heavy and churning active, but demand has been steady. The price may remain choppy through the rest of the year.
