OPENING CALLS:
| Class III Milk Futures: | Steady to 5 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 2 Higher |
| Soybean Futures: | 3 to 5 Higher |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | Steady to 2 Higher |
MILK:
Milk production is steady to higher, which provides sufficient supply for both bottling and manufacturing needs. If fact, many cheese plants are running near capacity. Strong milk production is expected to continue with cow numbers likely increasing in the anticipation of milk prices holding or increasing. Feed supplies are sufficient with good quality forage in most cases. Dairy quality hay prices are high and expected to remain that way. Expansions are limited with cow numbers increasing internally in current facilities. Increasing interest rates may put planned expansion on hold for the time being. It was thought the Fed would slow down on increasing interest rates but now many are anticipating them to remain aggressive to rein in inflation.
CHEESE:
Prices are expected to remain choppy for a while as holiday orders are being filled and shipped. Much of this is already in place at retail and food service places. Slowing demand will begin to move more product to inventory.
Supply is readily available and sufficient for demand.
BUTTER:
Increased churning may be building inventory after demand is met. Much of the butter for the holidays has already been purchased and in place. Price may see some weakness, but a decline may be slow. Exports continue to remain very strong despite the U.S. price being significantly higher than the world price.
