OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 7 to 14 Higher |
| Soybean Meal Futures: | $4 to $5 Higher |
| Wheat Futures: | 5 to 6 Higher |
MILK:
Milk futures may have a difficult time regaining the recent losses anytime soon. Underlying cash cheese prices will need to reduce their wild price swings and butter will need to find support. Until this happens, traders may not step into the market aggressively. Milk production is sufficient for demand with demand strong but holding at seasonal levels. An increase in demand could tighten supplies, but it is the time of year during which demand is typically slower. The December Milk Production and Cold Storage reports will be released on Friday. Until then, traders will trade based on what takes place on the spot market.
CHEESE:
Cheese prices were stable on the spot market Friday. Traders will be cautious over price movement this week and whether it will remain as volatile as it has recently been.
BUTTER:
The recent weakness of butter has been surprising as it was expected to trend higher. However, the abundant cream supplies have kept churns busy and supplies readily available for demand. Manufacturers are balancing the building of inventory and are moving extra supplies to the spot market.
