OPENING CALLS:
| Class III Milk Futures: | 1 to 10 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Lower |
| Soybean Futures: | 5 to 7 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 0 to 1 Lower |
MILK:
Class III futures are trading 3 lower to 7 higher Wednesday morning. Tuesday's WASDE report left the market optimistic about milk prices as there were increases for Class III, IV and the All-Milk price for 2026. Production is still high, with some articles floating around about the possibility of the herd size eventually creeping its way up to 10 million head of cattle. For now, the market has done an excellent job of finding products and consumers to utilize most of the excess in production. November's WASDE report raised the ending stocks for this year on both Fat Basis and Skim-solid Basis, but there are stories to see out with exports and domestic use for Skim-solids that show promise.
CHEESE:
Overnight cheese futures are unchanged. Cheese led the charge Tuesday in the spot market with an increase in Cheddar Blocks of 5.25 cents. I expect to see this spot market volatility continue as we head closer to the holidays. Production is still strong, yet demand is there, building inventories as they see opportunities to.
BUTTER:
Butter has not yet been traded Wednesday morning. Exports for butter are the biggest concern lately, as every other market has seemed to find demand. Butter use is not keeping up with the large quantities of production. The November WASDE report highlighted this fact on Tuesday when butter was the only product to be projected with a lower price for 2026 than last month's report. Cream supplies are still readily available but are getting tighter in certain regions.
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