Opening Calls:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Steady to 5 Lower |
| Butter Futures: | 1 to 2 Lower |
Outside Market Opening Calls:
| Corn Futures: | Mixed |
| Soybean Futures: | 3 to 6 Lower |
| Soybean Meal Futures: | $2 to $4 Lower |
| Wheat Futures: | 1 to 3 Higher |
Milk:
Traders showed uncertainty overnight with bid and offers very wide apart. The disappointment of underlying cash leaves traders in a quandary over price direction. The anticipation is for milk prices to increase due to the provisions of the stimulus bill for food aid. However, underlying cash prices do not seem to be concerned over supply. Cheese prices have remained in a somewhat tight price range since mid-November, yet the market has experienced substantial volatility as emotion runs high. The impact of more money for food programs and reimbursement for milk donations may not be as great as it was in April and May due to the market being in a different posture and time of year. Milk production is higher, allowing for more milk to be available to satisfy demand. This is what is causing some uncertainty among traders.
Cheese:
The positive of the market is that support is holding. Prices may not get any worse than they have been. That will continue to provide some optimism that demand might improve prices as the year progresses. Cheese futures show increasing price as the year progresses in anticipation of a seasonal increase of prices.
Butter:
Butter futures exhibit optimism as futures show strength from now through October before they dip back seasonally. We know that price movement will be far from following this pattern. Demand will need to exceed supply, which may be a tall order for the foreseeable future. At present, spot price may continue to chop around remaining in a sideways range.
