OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 6 to 9 Lower |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | 4 to 6 Lower |
MILK:
Class III milk futures were at least able to bounce a bit Tuesday, but that was little consolation given the pressure the market has been under. Milk production is on track to remain strong this year as cow numbers continue to increase as well as production per cow. Schools will be closing soon, which will put more milk on the market to be absorbed by manufacturing. However, the change will not be as much as previous years due to a percentage of schools having continued with at-home instruction to some extent. This milk will be absorbed easily as current supply has been utilized without any dumping of milk as of yet. Futures are expected to trade in a tight range until cash provides direction.
CHEESE:
There is hope the increase of barrel cheese price Tuesday may indicate the market has found a bottom. However, blocks did not provide support to that idea as early strength gave way to lower price. The recent pattern has been that a bounce in cheese prices has been short-lived. Thus, traders will be cautious over the increase Tuesday.
BUTTER:
Price is expected to hold and potentially move in a sideways pattern for a period of time. There seems to be sufficient production and supply to meet demand leaving buyers less aggressive in the spot market. It may be difficult for price to reach $2.00 any time soon as demand is steady.
