OPENING CALLS:
| Class III Milk Futures: | Steady to 10 Higher |
| Class IV Milk Futures: | 5 to 15 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | Steady to $2 Higher |
| Wheat Futures: | 1 to 4 Lower |
MILK:
Overnight trading activity in Class III futures was a little higher than usual with prices mixed. However, looking at the bids and offers, it indicates higher prices may unfold as trading activity increases Thursday morning. The Cold Storage report Wednesday was neutral to slightly bearish for cheese, but the numbers on the report are not expected to influence trading at this point. President Biden indicated there will be no shutdowns in the country due to the surge of the virus. This will keep dairy demand strong from the food service industry. Winter weather continues to remain somewhat mild, providing comfortable conditions for cows, allowing for milk production to remain strong. USDA will release the November Livestock Slaughter report Thursday, which should indicate continued heavy culling of the dairy herd as was shown on the milk production report. Thursday is the last trading day for the week. Markets will be closed on Friday and will reopen Sunday night.
CHEESE:
Prices may regain the ground they lost last week. Overall demand remains strong as buyers have been looking ahead and buying to increase supply for first quarter expected demand. More milk will be available for manufacturing over the next week as schools are closed and school milk is diverted from bottling. The extra milk will be handled easily and will be welcomed by most manufacturers.
BUTTER:
Butter is on a roll with price reaching back to the highest level since Oct. 4, 2021. Price would need to move another 25 cents to reach the high set in 2019. That may be a tall order, but in Thursday's market environment it could be possible. Strong domestic and export demand should keep price supported. The Cold Storage report showed a large decline of stocks in November, adding to the current bullishness of the market.
