OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | Mixed |
MILK:
Class III milk futures were able to close mostly higher, with gains limited as traders remain cautious over how much more strength block cheese will have. However, overnight trade indicates continued interest in buying. Milk production slowed a bit over the past week as very cold weather impacted cow comfort. The weather pattern has changed with milder weather in the forecast for much of the rest of the month. Milk production will remain strong, keeping a sufficient supply available to the market. More milk will be diverted to cheese production over the next few weeks as schools will close for the holidays. Spot milk should be readily available for those who want it.
CHEESE:
The block cheese price has increased for three consecutive trading days and may soon run out of strength. Once the immediate buying interest is satisfied, the buying interest may not be as strong. Higher cheese production may keep sellers aggressive, as they do not want to limit inventory growth.
BUTTER:
The price may revisit the low as the recent weakness may indicate holiday demand is slowing. The hope is demand will remain sufficient to provide a level of support through the end of the year. Butter production is strong due to the heavy cream supply.
