OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 3 Lower |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | Mixed |
MILK:
Cash prices continue to support milk futures. The weakness of Class III Thursday was a matter of futures already having the gain of barrels factored in. It is interesting to see weakness overnight but that may not provide any indication as to trading activity Friday. Trading activity will not be influenced by the World Agricultural Supply and Demand report Friday, as it will provide USDA's estimates of milk production, milk prices and product prices for this year. They will also release their initial estimates of the same for 2023. The report will be released at 11:00 a.m. Central time. It could have larger implications if it is bullish and feed prices continue to rise as milk prices have a strong correlation to corn price.
CHEESE:
Cheese prices seem well-supported with any decrease being short-lived. Buyers continue to purchase when they can even if it means they need to bid up to get it. There is no leap frogging effect at the present time with prices moving on more of a calculated fashion. However, prices may have moved near a level at which buyers may step back to wait for a dip of price.
BUTTER:
Price has been increasing all week but is not expected to continue to trend higher. It is expected to remain in a sideways pattern for the foreseeable future. Churning is active with sufficient production for demand as well as building inventory. Buyers are purchasing much more ahead of time that usual.
