OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 4 to 6 Higher |
| Soybean Futures: | 5 to 7 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 10 to 14 Higher |
MILK:
Class III milk futures have seen a significant decline over the past 1 1/2 weeks. The market is trying to determine whether demand will remain strong through the end of the year and into next year or whether demand will slow seasonally, leaving sufficient supply and less aggressive buying. Bottling demand is steady to stronger for the holiday period with demand for school accounts to slow substantially in about two weeks. Milk receipts from farms continue to hold well, providing sufficient supply for both bottling and manufacturing. A bipartisan Dairy Pricing Opportunity Act of 2021 was introduced in the U.S. Senate earlier this week. This will set the stage for national hearings on Federal Milk Marketing Order pricing methods. Hearings will focus on current Class I skim milk pricing and the "higher of" formula that has previous been used. Initial hearings will be held with the next six months.
CHEESE:
Cheese prices held Wednesday with blocks holding steady for the past six days. Limited trading activity indicates most business is being done in the country through normal channels, eliminating the need to come to the cash market. Strong purchasing for the holidays in mostly finished.
BUTTER:
Price is expected to hold near the $2.00 level through the end of the year as holiday purchasing continues and buyers look ahead to the first quarter of next year. Cream is in strong demand for holiday production but that will slow over the next few weeks, allowing for more supply to be available for butter production.
