OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Higher |
| Class IV Milk Futures: | 5 to 12 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Lower |
| Soybean Futures: | 4 to 6 Lower |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | Mixed |
MILK:
It seems Class III futures are looking to move back to the highs from two weeks ago. Strong holiday demand for milk and dairy products may push prices higher. There are expectations that greater demand than usual might be taking place due to consumers wanting to make up for last year when holiday parties were limited. The question is whether strong demand will remain after the holidays. We can enjoy the higher prices as long as they remain. Class IV futures continue to push higher, setting new contract highs last week. Milk production has been slowing during the second half of the year with higher culling prevalent. With the potential for higher milk prices, culling is expected to slow but likely will not turn the corner and begin to increase anytime soon. Higher feed prices and higher costs for goods and services may limit the desire to increase cow numbers.
CHEESE:
Block cheese prices have been holding steady for the past two weeks with limited interest in buying or selling. Business is being taken care of through regular channels, eliminating the need for buyers and sellers to come to the daily spot market to accomplish business. It does not appear there is a void under the market, nor does it seem there is a desire or the need for buyers to be aggressive.
BUTTER:
Price is back up over $2.00 again. The question is whether it will remain there for the rest of the year. Inventory is decreasing, but still remains sufficient. Buyers are not concerned over a shortage but are purchasing to satisfy strong demand. Cream supply is somewhat tight and at higher prices, limiting production. However, supply is expected to increase in availability after the holidays.
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