OPENING CALLS:
| Class III Milk Futures: | 5 to 12 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $0.50 to $1 Higher |
| Wheat Futures: | Mixed |
MILK:
The strong early Class III futures prices on Wednesday quickly turned lower due to the cheese prices remaining steady and the decline in dry whey. Cheese prices remaining steady may be viewed as possible support, but the recent pattern has been that a day of steady cheese prices has been followed by weakness. The dry whey price was the negative item that took support out of the futures. Dry whey has been holding well, but a decline of 3 cents is significant as each penny move in dry whey is equal to a 6-cent move in the Class III price. Milk production is not expected to slow down anytime soon, and the November Milk Production report that will be released on Monday is expected to confirm that.
CHEESE:
Cheese production is strong and may increase further over the next few weeks as more milk will be diverted from bottling to manufacturing. Most orders for the holiday season are filled, with some fill-in buying continuing to take place to fill immediate orders. This may keep cheese prices choppy.
BUTTER:
The butter price is likely to remain in a range. Buying interest has been strong with retail demand improving due to the holiday season and the low price. Heavy cream supplies will keep production strong after the holiday season, which could harm price and limit upside potential.
