Opening Calls:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
Outside Market Opening Calls:
| Corn Futures: | Steady to 2 Higher |
| Soybean Futures: | 4 to 11 Lower |
| Soybean Meal Futures: | Steady to $4 Lower |
| Wheat Futures: | 8 to 12 Higher |
Milk:
There is a tug-of-war between what traders think milk prices should do and what underlying cash has been indicating. Traders believe buying will increase on the spot market as they will need to obtain supply for filling the Food Box program. This is keeping support under milk futures despite what has been taking place in underlying cash. Strong milk production and increased manufacturing seems to have provided more supply to the market than there was last year when buying was taking place for the Food Box programs. Milk production continues to slowly improve allowing more milk to satisfy all areas of production. Strong milk prices will keep barns full of cows keeping supply consistent. Caution may be exercised until direction is seen from the spot market before traders will become more aggressive.
Cheese:
The weakness of cheese prices last week may carry over into this week. Those who will be awarded to provide dairy products for the Food Box program may step up to purchase cheese from the spot market to fill those boxes. Of course, there are other dairy products beside just cheese that will be utilized, and the spot market is cheddar cheese that is not more than 30 days old. According to what took place last year, it should provide support and increase prices. The caution is that the market is in a different posture with supply than last year, which may limit price potential but not volatility.
Butter:
Increased buying for the Food Box program may not have much impact on the butter price. Price has been in a long downtrend since the first Food Box program took place last year. Supplies have continued to grow as increased demand for food programs were offset by the reduction in demand from the food service industry. This trend has not changed. Price will continue to struggle.
