OPENING CALLS:
| Class III Milk Futures: | 7 to 10 Higher |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 2 to 4 Lower |
MILK:
Milk futures have uncovered strong support after the initial announcement of the Omicron virus. The fear of an impact on demand has subsided as demand has continued to hold well. Holiday demand continues to remain strong even though some buyers have purchased cheese and butter ahead of time to make sure they have it on hand throughout the holiday period. The announcement by the USDA Monday of the establishment of the Local Food Purchase Assistance Cooperative Agreement Program (LFPA) that will award up to $400 million for emergency food assistance purchases of domestic local foods. And the announcement the Food and Nutrition Service is providing up to $50 million in funds provided by the American Rescue Plan for The Emergency Food Assistance Program (TEFAP) Reach and Resiliency Grants to state agencies to expand program access in rural, tribal, and other currently underserved areas, seems to be providing support. It is unclear how much impact this might have on dairy demand, but there is hope it will increase demand. Right now, it is psychological support.
CHEESE:
It will be interesting to see if further weakness unfolds in block cheese Tuesday. Buyers may hold back in anticipation of sellers becoming more aggressive. However, support remains under barrels and that could limit the weakness of blocks.
BUTTER:
Price is holding and demand is strong. Price could hold near the $2.00 level through the rest of the year. Buyers are not shying away from the current price. Business is being done in the country and inventory is declining. Cream supply is beginning to loosen in a few areas of the country.
