OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 3 Higher |
| Soybean Futures: | 4 to 6 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 6 to 9 Higher |
MILK:
Milk futures continue to trend lower. Underlying cash prices are reflecting slower demand. Milk production is steady to slowly increasing depending on the area. Milk production per cow is increasing with cow numbers above a year ago. Demand for dairy into next year is expected to be lower as consumers grapple with inflation and higher food prices. The Consumer Price Index will be released Tuesday morning and will have an influence on what the Federal Reserve does during their meeting today and Wednesday. Interest rates are expected to be raised another 0.75%. This may impact dairy demand more than what was earlier anticipated. Rabobank estimates global dairy demand to trend lower in the near term.
CHEESE:
Spot cheese prices have been at these levels and lower before over the past few months and have been able to rebound. It may be more difficult this time due to the time of year with holiday buying mostly accomplished and first quarter demand generally lower. Cheese production has been increasing, resulting in more being available to the market.
BUTTER:
The recent whipsaw price activity of the market may move some traders to the sidelines, which could increase daily volatility due to the lack of traders. However, price will move in reference to underlying cash and the strength of that seems to be in question. Overall, price is expected to decline as the end of the year approaches.
.jpg)
