OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 4 to 6 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 6 to 8 Higher |
MILK:
Milk futures may move in a sideways pattern following underlying cash. Cheese prices may remain choppy and buying for the holidays continues for fill-in orders and regular demand. Butter remains in good demand but may see some price weakness through the end of the year. Fundamentals have not changed much with milk production slowly improving. Weather has been good for the most part, keeping production per cow above year ago levels. Milk components are above a year ago, improving cheese yields. The last day to sign up for the Dairy Margin Coverage program for 2023 is Friday, Dec. 9. If a farm has expanded, there is an opportunity to sign up for supplemental coverage, which will use the volume of milk production from 2019. This needs to be signed up for prior to signing up for the Dairy Market Coverage program if it has not already been done.
CHEESE:
Cheese prices continue to flip-flop leaving little market direction. Upside potential is expected to be limited as supply and demand seem to be balanced. There are some indications of retail demand slowing, but that has not been widespread. This may be more evident once we move through the holidays. Cheese prices are about 20 cents per pound higher than a year ago with current consumers dealing with substantially higher prices for all food and consumer goods.
BUTTER:
Price is not changing much as demand remains good with buyers and sellers comfortable at the current price. The next week will be interesting as December futures will need to increase or cash price will need to drop to move in line with each other as we move to the middle of the month. Production is increasing as churns utilize the available cream supply.
