OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $2 to $4 Higher |
| Wheat Futures: | 2 to 4 Higher |
MILK:
January Class III futures rallied nicely after falling below $19.00 earlier this week closing yesterday at $19.52. Futures will move closely with underlying cash as it begins the period during which the trade prices it according to underlying cash. Front-month December adjusted last night to the AMS weekly prices released yesterday as most of the contract is priced and will begin to flat-line until December class prices are announced on January 4, 2023. Limited trading activity and volatility are expected today with spot prices expected to be choppy.
CHEESE:
Cheese prices may follow the recent pattern of flip-flopping with prices moving in the opposite direction they did yesterday. Even though the weakness of barrels offset the gain of blocks, traders had a bias toward blocks which provided support to milk futures. Weakness of blocks would take that away. Cheese futures indicate traders anticipate lower average prices in the first quarter of next year.
BUTTER:
Price is reluctant to show weakness. Price declines are followed by a retracement back up near where it had been. Demand remains strong with export volumes phenomenal. Some buyers anticipated price to weaken over the next month and are cautiously waiting for lower prices to purchase ahead for first quarter needs. Increased churning should bring more product on the market over time.
