OPENING CALLS:
| Class III Milk Futures: | 4-10 Higher |
| Class IV Milk Futures: | 2 to 4 Higher |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | Steady to $1 Lower |
| Wheat Futures: | Mixed |
MILK:
Trading activity is expected to be light Friday, similar to what took place on Wednesday. Of course, movement in the underlying cash may generate greater volume if the movement is significant. Not much movement in futures is expected, with traders mainly trying to scalp the market for a small profit if realized. Both the Milk Production and Cold Storage reports were not conducive to much upside price potential in milk prices developing anytime soon. The Milk Production report was bearish with the strongest milk output change of the year compared to the previous year. The Cold Storage report was neutral to slightly bearish. The reports indicate that the upside price potential for milk may be limited for an extended time. The markets will have a full trading day.
CHEESE:
Cheese prices are expected to remain in a range. But there is concern that further weakness may unfold as holiday demand is complete and cheese production remains strong. It will be up to regular demand to carry the baton, but that demand may not be able to absorb the production.
BUTTER:
Butter may suffer the same fate as cheese, with the potential of further weakness. Strong butter production due to substantial cream supplies and inventory in November, only one percent below a year ago, does not bode well for the price potential in the near term.
