OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 5 to 7 Lower |
| Soybean Futures: | 8 to 12 Lower |
| Soybean Meal Futures: | $2 to $4 Lower |
| Wheat Futures: | 10 to 14 Lower |
MILK:
Milk futures were lower Monday but held well in the face of uncertainty over the omicron virus threat. An impact on the economy may not be felt more deeply until early next year. Holiday buying has been strong, resulting in good demand. Milk production is being utilized without difficulty. Spot milk availability is tighter with higher prices for spot milk than usual for this time of year. Weather has been very good for cow comfort keeping milk production strong. It is uncertain if culling is slowing now that it is near the end of the year with adjustments having been made due to higher costs. USDA will release the October Agricultural Prices report Tuesday afternoon, providing prices used in the calculation of income over feed used for the Dairy Margin Coverage program. Tuesday is the last day to trade November futures and options with the Federal Order prices announced Wednesday.
CHEESE:
Cheese prices held Monday and the industry sorts through the potential implications of the new virus and current strong holiday demand. There was no interest from buyers or sellers for blocks Monday either, indicating the market is balanced or that no one wanted to do business due to the uncertainty surrounding the market. There may be limited trading activity again Tuesday.
Butter:
Butter demand is strong and should remain that way the next week or two. Holiday buying will then be finished with buyers looking ahead to first quarter 2022 demand potential. Inventory has been decreasing substantially and will close the year significantly lower than a year ago. This should continue to provide support to price.
