OPENING CALLS:
| Class III Milk Futures: | 2 to 8 Higher |
| Class IV Milk Futures: | 4 to 8 Higher |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 1 to 3 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 2 to 3 Lower |
MILK:
Milk futures have shown higher prices due to increased support from cash prices. Although futures are a far cry from where they should be for dairy farms to be profitable, they do show some promise for higher prices. Class IV futures have shown greater strength as the higher butter price and the strength of nonfat dry milk have moved futures above Class III again. Hopefully, the January class prices will be the lowest for the year. Traders anticipate a January Class III price of $14.59 and a Class IV price of $13.57. The Federal Order prices will be released Wednesday afternoon.
CHEESE:
Cheese prices may have difficulty increasing much further under the current market fundamentals. Strong milk production will keep manufacturing higher. This should keep sufficient supplies available for demand. Buyers may remain comfortable with the current supply and the continued supply, leaving them less aggressive in the spot market.
BUTTER:
The stability in the spot butter price over the past two days gives the impression that the market may have found support. The large amount of unfilled bids remaining at the close of spot trading on Tuesday suggests further gains are possible. The December Dairy Products report will be released Thursday, providing a better perspective on supply and demand.
