OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 1 Lower |
| Soybean Futures: | 1 to 4 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 1 to 2 Higher |
MILK:
Milk futures have been showing strength with limited support from cash. Traders seem to be trying to create volatility to provide more opportunities for scalping the market for a profit. It is not about fundamentals, otherwise the market would be steady to lower. The fundamental outlook for the market does not indicate much upside potential anytime soon. Even if demand remains strong or increases, the supply of milk and dairy products will be readily available with no concern over a shortage. Milk production is expected to remain strong and above a year ago for some time.
CHEESE:
Cheese prices are expected to remain sideways with the possibility of lower prices during the first quarter of the year. There are reports that demand remains strong, but that may not be sufficient to keep inventory from building.
BUTTER:
The butter price has not been able to find a bottom. Manufacturers continue to offer supplies on the spot market to limit inventory from building up. There has been a good volume of loads traded with buyers interested in purchasing what is coming to the market, but only at lower prices. Further price weakness is likely.
