OPENING CALLS:
| Class III Milk Futures: | Steady to 5 Lower |
| 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: | 1 to 2 Lower |
MILK:
It is uncertain how trading volume will be Wednesday. Sometimes, trading activity will be limited on the final day of the year. This may depend on the strength or weakness of the underlying cash. The current market fundamentals suggest prices will remain lower for some time to come as milk production is expected to be strong. More milk will be moving to bottling again as schools reopen after the holidays. However, that will not change the market as there is sufficient milk available for both bottling and manufacturing. The January contract is the front month as December finished trading on Tuesday. The December Federal Order class prices will be announced Wednesday. The trade anticipates a Class III price of $15.88 and a Class IV price of $13.56. USDA will also release the November Agricultural Prices report, which provides the prices used in calculating income over feed for the DMC program.
CHEESE:
It will be surprising if the block cheese price moves higher Wednesday. It has increased in the past two days with 19 loads traded. This may have filled the immediate demand that had surfaced. Once the orders are filled, there may be little reason to remain aggressive buyers.
BUTTER:
The butter price may coast through the end of the year with buyers and sellers comfortable with the current price. Churns will resume full schedules next week as cream supplies remain plentiful.
