OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 6 to 9 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 5 to 7 Lower |
MILK:
Milk futures have exhibited some incredible strength over the past three days with the market likely having moved higher than underlying cash would suggest. Short covering may have run its course for the time being. This does not mean futures will fall back unless underlying cash shows weakness. There will be volatility as traders will be concerned over demand once holiday orders are filled and the calendar moves into the first quarter of 2022. Seasonally, demand will slow but these past two years have been anything but seasonal. World demand is good for dairy products with exports strong. Prices on the Global Dairy Trade auction Tuesday were higher across the board with the trade weighted average up 1.4%.
CHEESE:
Barrel cheese price has been the strength of underlying cash. Yet barrel cheese price is still 18 cents below the high set during later October. A large part of the strength seen in Class III milk futures is due to renewed optimism over price potential due to decreasing milk production. Cheese demand remains strong with sufficient supply available for the time being. BUTTER:
Butter is making another leg up as buyers remain aggressively looking to increase ownership of supply. Strong demand keeps product moving. Much of the orders for the holidays have been shipped or will be over the next week. Some of this strength may be the result of fill-in orders that need to be satisfied while some of it may be buyers already turning their attention to first quarter 2022 demand.
