OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 3 Higher |
| Soybean Futures: | 2 to 4 Higher |
| Soybean Meal Futures: | $0.50 to $1.00 Higher |
| Wheat Futures: | 4 to 5 Higher |
MILK:
Milk futures have been unable to trend higher and possibly the next two weeks will be the same. Both weeks are shorter trading weeks due to Christmas and New Years. Milk production will not slow down, but more milk will be diverted to manufacturing due to schools being closed. Spot trading will influence the market Monday, while the November Milk Production report may influence futures later Monday and on Tuesday. The report will be released Monday afternoon and is expected to show higher milk production. I estimate milk production to be 3.5% above a year ago, with cow numbers to decline by 5,000 head from October.
CHEESE:
More milk is available for cheese production as milk has been diverted from bottling due to schools being closed for the next few weeks. Spot milk prices are declining as more milk is available for purchase. This may lead to further pressure on prices.
BUTTER:
There is potential for further weakness in the butter price before the end of the year. Food service demand is below a year ago, limiting the volume of butter being consumed. The Cold Storage report will be released on Tuesday, showing the level of butter inventory and whether it has been decreasing seasonally. This will be the first monthly Cold Storage report since the government shutdown and will bring the reports up to date.
