OPENING CALLS:
| Class III Milk Futures: | 5 to 15 Higher |
| Class IV Milk Futures: | 5 to 15 Higher |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 4 to 6 Higher |
| Soybean Futures: | 10 to 15 Higher |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 4 to 6 Lower |
MILK:
The strength of milk futures was good to see Tuesday and providing some hope that a seasonal bottom may be developing in the market. Traders will be cautious unless the market will provide solid indication that the recent strength will last. The potential impact of drought, hot weather and higher feed prices may begin to have an impact on the overall outlook for milk supply in the coming months as demand increases from school accounts. This could be enough to provide support from buyers as they look ahead to fall and holiday demand. Futures should trade higher prior to spot trading, but traders will remain cautious.
CHEESE:
Higher cheese prices Tuesday and unfilled bids remaining at the close of spot trading Tuesday points to possible further gains Wednesday. The question is whether prices have again increased sufficiently to bring sellers to the market in the attempt to take advantage of the higher prices. With more milk moving to bottling for schools, sellers may be a bit less anxious to unload cheese aggressively.
BUTTER:
Price continues to chop in its downtrend. That may come to an end soon with the market potentially finding some support. Demand will need to improve, and inventory will need to decrease.
