OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | 0.5 to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 1 to 3 Lower |
| Soybean Meal Futures: | $1.00 to $1.30 Lower |
| Wheat Futures: | 2 to 4 Higher |
MILK:
Thursday's divergence from weak nearby trade and supportive buying in the deferred contracts shows the market's confidence in demand coming as we enter the new year. USDA's announcement to purchase $165.5 million in dairy products produced in America as well as many other commodities for a total investment of $472.5 million. The last time we had a program like this was from May 2020 through May 2021. It helped boost low prices coming out of COVID at that time. While this program is a much smaller investment, it should help with more dairy utilization.
CHEESE:
Cheese prices came under pressure on Thursday as it seemed like every other product found strength in the cash market, yet cheese traded lower for the first time this week. Futures saw weakness in the front months while the deferred contracts traded higher by the end of the day. Cheese futures are trading slightly higher this morning with both the October and November showing 0.1-0.2 cent gains. The deferred contracts have not yet been traded.
BUTTER:
Butter traded higher Thursday, gaining strength after a 3.5 cent higher spot market close. Butter has not yet traded on the overnights, but the market expects some follow through strength after Thursday. Butter was not called out as one of the dairy products to be purchased in USDA's announcement Thursday; however, there is speculation that it will be included.
