OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Steady to 5 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 4 to 6 Higher |
| Soybean Futures: | 10 to 12 Higher |
| Soybean Meal Futures: | $3 to $4 Higher |
| Wheat Futures: | 3 to 5 Higher |
MILK:
January Class III futures had a wide price swing overnight with price ranging from 22 cents lower to 26 cents higher. The current market shows a bid and offer 40 cents apart. In fact, most of the bid and offers in all milk futures are wide with traders, unsure of market direction, placing orders and then turning off the screen for the night. Steady cheese prices on Thursday does leave traders guessing as to price direction. Milk production is steady with weather continuing to remain good for cow comfort. Feed prices continue to creep higher and will remain a concern. The potential for higher milk prices may offset the increase of feed prices, keeping milk production strong. Culling may slow as most farmers may have adjusted to where they want to be with cow numbers for the time being.
CHEESE:
Spot cheese prices could go either way Monday. It is unlikely prices will fall due to there being no apparent void under the market. However, price may have a difficult time moving much higher due to holiday demand having been supplied and first quarter potential demand already being prepared for. Prices may be choppy this week.
BUTTER:
Price is not expected to weaken now that Christmas is past. That demand had been filled earlier and buyers continue to remain aggressive. There is a fear of tighter supply as we move through 2022, which has been causing buyers to increase ownership for expected first quarter needs.
