OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Steady to 5 Lower |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Lower |
| Soybean Futures: | 1 to 3 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 1 to 3 Lower |
MILK:
Class III futures reacted negatively to the minor weakness of block cheese Tuesday. Later futures contracts have not been moving much, relative to what has impacted the market on a daily basis. However, Tuesday the negative reaction permeated throughout the contracts of 2023. Even though milk production showed signs of slowing on the December report, there remains sufficient milk for demand. The industry is not concerned over supply at the present time. That may change if feed prices remain high and milk prices decline. For now, both bottlers and manufacturers have sufficient milk for needs. USDA will release the January Federal Order class prices Wednesday.
CHEESE:
Cheese prices seem to have adjusted to a lower range and may remain here for a period of time. Buyers are willing to pick up supply at steady to lower prices. There is no concern over supply, leaving buyers generally purchasing as needed. Inventory is rebuilding as cheese production exceeds demand.
BUTTER:
Price is not expected to find solid support anytime soon. Supply is increasing as churning is active and cream supply plentiful. Demand has slowed in the retail sector but continues to do well for the food service sector. Price is at the level it was in December 2021. High prices cure high prices.
