OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Lower |
| Soybean Futures: | 5 to 9 Lower |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | 5 to 8 Lower |
MILK:
Milk futures have been trending higher but may pause a bit now that the calendar is moving to the middle of the month. There are some indications that demand is slowing in some areas as retail orders have been filled or nearly filled. Food service industry demand is termed as steady. This is the final full week for schools to be open before the extended holiday period. Milk will be diverted to manufacturing keeping plants busy but not overwhelmed. Milk production is holding well as weather has been good for cow comfort. There are some reports that a few milk plants are becoming more aggressive in their attempts to get producers to switch plants as they need more milk. It has been quite a while since something like this has taken place. However, it is not widespread, but may change the dynamic of the market.
CHEESE:
Barrel cheese price gained last week while block price decreased slightly. This may indicate buyers are cautious as the demand for the holidays and seasonal demand may slow early next year. However, it has remained stronger than usual for this time of year. It is possible some of the festivities that had been planned for the holidays may be tempered a bit now that there has been a surge in COVID viruses again.
BUTTER:
Price is expected to remain strong with the potential to increase further this week. Buyers generally have most of their supplies purchased and orders filled for the holidays but have turned their attention to first quarter 2022 demand. Export interest remains strong. Inventory continues to decline with stocks significantly below a year ago.
