OPENING CALLS:
| Class III Milk Futures: | 10 to 40 Higher |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 6 Higher |
| Soybean Futures: | 12 to 25 Higher |
| Soybean Meal Futures: | $2 to $5 Higher |
| Wheat Futures: | Mixed |
MILK:
Class III milk futures have gone crazy overnight. They opened significantly higher as expected due to late market strength Tuesday. However, the magnitude of the gains overnight are surprising. There have been no press releases from the USDA so far pertaining to anything that would have provided such support. It will be an interesting day to see whether this was some excitement based on some perception or rumor or whether underlying cash will support the strength. USDA will release the World Agricultural Supply and Demand report Wednesday, which will show their estimates of milk production, milk prices and product prices for this year and initial estimates for 2022. The report is not a market mover for the dairy industry.
CHEESE:
July cheese futures also showed a price increase of over 4 cents in overnight trading on limited activity. There is excitement being generated over higher cash prices. Spot trading Wednesday will be the determining factor whether this exuberance will be supported.
BUTTER:
Price has been choppy over the past three weeks in a price range of 7 cents. There seems to be solid support under the market, which will minimize weakness. This gives buyers the confidence to purchase butter for expected and potential upcoming demand and store it as a hedge against higher prices if they were to unfold. Export demand remains strong.
