OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | 0.10 to 0.50 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 1 to 2 Higher |
| Soybean Meal Futures: | $1.40 to $1.60 Lower |
| Wheat Futures: | 2 to 3 Lower |
MILK:
Milk supplies are steady week over week. The East has been unseasonably warm, yet production does not seem to be affected. Central milk supplies are steady although spot milk has been less abundant. West supplies are still readily available; however, the Pacific Northwest is suffering from the effects of avian influenza affecting some herds. Nonfat dairy milk (NDM) saw price increases mostly across all regions. For the weekly grocery store activity, conventional total advertisements saw a 3% decrease this week. Organic dairy ads, on the other hand, increased 70%.
CHEESE:
Cheese market conditions were steady to firmer last week. In the East, production is well balanced with demand. There have been some new product launches and holiday promotions to drive demand. In the Central region, milk supplies are steady, but spot availability has tightened as Class I and IV processors increase intake. In the West, milk supplies are balanced as production is steady and export demand is moderate to strong, especially to South Korea. Food service demand is unchanged. Cheese advertisement dropped week over week by 17%.
BUTTER:
Butter demand has increased in the West and is steady in all other regions. Holiday buying is slower than a year ago. Export demand is steady. Some butter manufacturers say export sales are up compared to a year ago. Cream is somewhat tighter and butter production is increasing.
