OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 2 to 4 Lower |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 3 to 5 Lower |
MILK:
There is not much news in the dairy industry to provide enough support for the Class III futures to trend higher. However, futures in 2022 have been holding well despite the fluctuation in the November and December contracts. Futures are unlikely to see much movement as there is concern further downside may develop in block cheese. Milk production has been steady to higher despite some challenges being faced in the industry. Milk is being processed without much difficulty other than some delays in delivery, but nothing widespread. Weather continues to be conducive to cow comfort. The upcoming milk production report will be watched to see if milk production may fall below the level of the previous year. The last time that happened was in May 2020 and for obvious reasons. Milk was being dumped and not all of it was likely accounted for on the reports. However, production lower than a year ago on this report will be result of heavier culling and lower production per cow.
CHEESE:
The weakness of block cheese Monday is expected to carry over Tuesday as there were no buyers showing up in the spot market. Offers for five loads of cheese will leave buyers on the sidelines or at least less aggressive to take a stand. Demand may be settling down to regular orders and fill-in orders as the huge push for product for holiday demand may be finished.
BUTTER:
Solid support remains under the market keeping price in the $1.90's. it may remain at this level for the next few weeks or possibly through the end of the year. However, there is the potential price could slip lower as strong demand for the holidays subsides.
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