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: | 7 to 10 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 2 to 3 Lower |
MILK:
Class III milk futures have remained in a sideways range with limited reason for strength. Futures have held fairly well despite the continued weakness of the block cheese price. Class IV futures have seen a similar pattern with less activity and limited volatility. The market remains bearish with little potential for strength for possibly the next few months. Milk production will remain strong, and demand will need to hold to keep prices from further weakness. Seasonally, demand slows after the holiday season, which could indicate further price weakness may be coming. Traders will be cautious ahead of spot trading as further weakness in block cheese may be seen.
CHEESE:
Further weakness is expected for the block cheese price. The slight decline on Thursday may continue as buyers hold back and purchase on an as-needed basis while manufacturers continue to move supply to the market to limit inventory growth.
BUTTER:
The butter price is expected to hold steady and show minor strength moving through the holiday season. However, there is little reason to believe the price will see much upside potential. Churns are running full weekly schedules, keeping the supply of butter readily available. The inventory is potentially decreasing at a slower pace than usual during this time of year.
