OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Steady to 5 Higher |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 5 to 10 Lower |
| Soybean Futures: | 8 to 12 Lower |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | 5 to 8 Lower |
MILK:
Closer futures contracts are the focus of traders with contracts in 2022 showing limited trade and price movement. It is hard to believe that one month ago, July futures were trading above $20.00 and closed Tuesday at $17.46, bringing price back down to where it was in early February. Grain prices remain high, but the steady flow of milk is providing sufficient supply for bottling and manufacturing. Weather is impacting milk output, reducing receipts at the plant level. This does not mean that the market will tighten anytime soon, but it may provide a bit more balance to supply and demand. Grain futures were lower overnight as traders look ahead to the World Agricultural Supply and demand report Thursday.
CHEESE:
Continued weakness of block cheese and now being followed by barrels, is a concern. Sellers keep offering cheese on the spot market, desiring to move supply rather than hold it in inventory. Heavier cheese production leaves more available to the market with demand being satisfied through regular channels and excess showing up on the spot market. Cheese has yet to find a bottom.
BUTTER:
Price is not expected to move outside the price range it has been in for a while. The supply and demand balance seems to be more closely aligned, leaving prices fluctuating as buyers and sellers doing business as they see fit. Buyers are able to obtain sufficient supply for orders and to build inventory while sellers want to manage inventory and keep it from building.
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