OPENING CALLS:
| Class III Milk Futures: | 10 to 20 Lower |
| Class IV Milk Futures: | 5 to 10 Lower |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 3 Lower |
| Soybean Futures: | 12 to 16 Lower |
| Soybean Meal Futures: | $4 to $6 Lower |
| Wheat Futures: | 4 to 6 Lower |
MILK:
Milk futures have been on a meteoric rise the past two days. According to overnight trading activity in Class III futures, the market may have overdone itself to the upside. There were some very wide bids and offers posted and yet there was some trading activity with prices 10 to 42 cents lower. This may not be indicative of what will transpire Thursday, but it gives the indication that the market may have risen too far, too fast. There was much excitement generated earlier this week with the USMCA panel determination potentially opening the way for more exports to Canada. However, the market needs to find a balance as the anticipation may move dairy prices too high resulting in little interest from Canadian buyers to purchase U.S. products. It will certainly be an interesting day. USDA will release the November Dairy Products report showing dairy product production for the month.
CHEESE:
Buyers of cheese have been aggressive this week as they are looking ahead to potential tightening supplies and reduced production while at the same time seeing strong demand. Buyers have been aggressive in their desire to rebuild aging programs that were depleted during the fourth quarter. However, with cheese inventory closing out the year higher than the previous year, there seems to be a fear frenzy that has gripped the market.
BUTTER:
Price is poised to break above the previous high set in 2018 with the aggressive buying interest of product. Bulk butter supply is termed as very tight. Extra cream that had been available over the holidays has disappeared reducing churning schedules. This will continue to provide support under the market.
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