OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 4 to 6 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 5 to 6 Higher |
MILK:
Milk futures have been chopping around in a sideways pattern at the low-end of the trading range in nearby contracts. Later contracts have been able to hold some of the recent gains. The bearish November Milk Production report and the neutral to slightly bearish November Cold Storage report have not had much influence on the market. The current fundamentals do not suggest there will be much upside price potential for a while. Milk production is expected to continue to remain strong and cow numbers large. USDA will release the November Livestock Slaughter report Wednesday afternoon, showing the level of dairy cattle slaughter for the month. The markets will close at noon CST and will reopen Thursday night at the usual time.
CHEESE:
Further weakness of cheese prices may be possible as buyers remain unaggressive. Cheese supplies are plentiful, with demand likely slowing seasonally. The current level of the milk supply and strong cheese production is likely to limit the upside price potential for a while.
BUTTER:
The butter price is expected to have limited upside potential and the possibility of making a new low for the year over the next week. The minor increase on Tuesday may be temporary. However, the volume of loads traded might suggest buyers may be willing to step up at the current low price even though supplies are plentiful.
