Opening Calls:
| Class III Milk Futures: | Steady to 10 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
Outside Market Opening Calls:
| Corn Futures: | 2 to 4 Higher |
| Soybean Futures: | 2 to 4 Higher |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 3 to 6 Lower |
Milk:
Traders are deciding whether support has been achieved in the underlying cash or whether the market is just taking a breather before resuming the downtrend. According to Wednesday trade and overnight activity, there is a sense that spot prices have reached a level at which buyers might step up again. More than likely, it is just a matter of futures attempting to get in line with cash due to heavy selling earlier in the week. The bearish implications of the Milk Production and Cold Storage reports will remain over the market unless demand and underlying cash proves otherwise.
Cheese:
Cheese prices declining to the current levels has been a surprise since the friendly news of increased purchasing for the Supplemental Nutrition Assistance Program and another round of the Farm to Families Food Box program at the beginning of the year. However, it has not reacted positively due to plentiful fresh cheddar cheese supply. Unless supply tightens in the country bringing more buyers to the daily spot market, price may continue to flounder.
Butter:
The low butter price should be attractive for buyers. However, large stocks and strong production are keeping buyers purchasing on an as-needed basis. They see little need to stock up as there is no indication of supply tightness anytime soon. The anticipation is that prices may decline further under current market conditions. Buyers have readily available supply in the country with little need to come to the spot market.
