OPENING CALLS:
| Class III Milk Futures: | 10 to 15 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 3 to 4 Higher |
| Soybean Meal Futures: | $0.50 to $1 Higher |
| Wheat Futures: | Mixed |
MILK:
It appears traders intend to create volatility in an attempt to scalp that market for a slight profit again Tuesday. The overnight pattern was similar with no change in fundamentals. Higher early trade on Monday succumbed to selling as the underlying cash market showed little change, and earlier positions were liquidated. A similar setup seems to have developed overnight. Spot trading will dictate the direction of the futures. Tuesday is the last day of trading for December futures and options, with the December Federal Order prices announced on Wednesday.
CHEESE:
The increase in the block cheese price Monday may not continue. Strong buying interest developed, but that was only able to increase the price by a penny. Manufacturers continue to move supplies to the market to avoid building inventory. Low prices should stimulate demand, but the time of year may limit the increase in demand.
BUTTER:
The butter price has been holding, but is not expected to have much upside price potential anytime soon. There is concern the price could make a new low prior to the end of the year. Sellers may want to move more inventory before the end of the year and buyers may hold back
