We look for milk to open .05 to .15 higher.
Meanwhile, the butter market closed out the week mixed, settling between up 3.325 cents to down 1 cent, with 31 contracts trading Friday. November-December average saw a decline of 1 cent to close at 1.73, while the Q1 pack settled unchanged on Friday at 1.65. The spot market continued its recent downward trend, falling 3 cents to 1.74 on no trades. We look for the spot market to maintain its decline into this week as holiday demand continues to subside.
We look for butter prices to open mixed.
The grain markets saw choppy trading last week as corn closed down 7 cents to settle at 638.5, wheat ended down 3.25 at 616.75, and soybeans up 8 cents to 1166. The week was defined by heightened volatility as the grain complex saw price declines on the week. The dollar swung wildly throughout the week, but found its footing as the week progressed helping to pressure grain prices lower.
Wednesday the USDA released its November supply/demand figures. The corn yield dropped to 146.7 bushels per acre, down from 148.1 in October. Soybean yield fell slightly, estimated to be 41.3 bushels per acre, down from 41.5. The wheat yield fell to 43.7 from 43.9. Even with the lowered yield expectations, the grain complex seems to want to chop sideways to lower in the near term. Informa released its 2012 planting estimates on Friday with the corn acre estimate increasing to 94 million from the previous estimate of 93.1. Soybean acres are estimated to now be 76.1 million down from 77 million. The wheat acre estimate was left unchanged at 57 million.
We look for corn to open steady to 2 lower, beans to open 8 to 10 higher, meal to open .50 to 1 higher, and wheat to open 1 to 3 cents lower this morning.
Daily CME spot market prices:
Block cheese $1.950 (up 5 1/4)
Barrel cheese $1.98 (up 5)
Butter: $1.74 (down 3)
Grade A NFDM: $1.435 (unchanged)
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