OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 5 to 10 Lower |
| Butter Futures: | 1 to 3 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 3 Higher |
| Soybean Futures: | Steady to 2 Higher |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 1 to 3 Higher |
MILK:
Selling erupted in milk futures due to weakness of underlying cash. The divergence of block and barrel cheese prices basically offset each other, but the weakness of blocks triggered the selling along with the substantial drop of butter. January and February contracts are not far above $19.00, where they were on Nov. 3. It is no surprise that USDA extended the signup for the Dairy Margin Coverage program to Jan. 31, 2023. Today was originally the final day, but true to form, it has been extended. Signup for this program has been extended every year since the program began. USDA will release the World Agricultural Supply and Report on Friday, which will provide estimates for milk production, milk prices, and dairy product prices for this year and next year.
CHEESE:
It is likely blocks might be higher and barrels lower during spot trading Friday as prices flip flop. That has been the pattern lately as buyers and sellers take care of business for the holidays. Cheese supply is sufficient for demand with increased cheese production beginning to move more to inventory.
BUTTER:
The large drop of butter Thursday may see further weakness Friday as buyers may hold back to see how much more aggressive sellers will be. Increased churning is putting more supply on the market that is meeting demand and building inventory. Cash price is more in line with December futures.
