OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 1 Lower |
| Soybean Futures: | 2 to 4 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 3 to 4 Lower |
MILK:
Class III milk futures have been holding in a sideways trading range. However, further weakness in the underlying cash may erode the support, resulting in additional weakness. The time of year makes it difficult to expect much upside price potential, as much of the holiday demand has been met. The demand for fluid milk is steady, but will soon decline as schools close for the holiday season. This milk will be diverted to manufacturing, with spot milk prices likely declining. There is a sense dairy farms will not reduce milk output even though milk prices are low. There may continue to be a desire to increase production to make up for lower milk prices, which will result in an extended period of low milk prices. High calf prices will remain a significant source of farm income.
CHEESE:
The block cheese price has yet to find a bottom. Cheese production is steady to higher and manufacturers do not want to build inventory. Cheese continues to be offered on the spot market, with buyers purchasing at lower prices. Buyers have little concern over higher prices developing anytime soon.
BUTTER:
The price has been holding, but the inability of the price to trend higher keeps traders cautious. Increased holiday demand is supporting the price for now, but those days may be numbered.
