OPENING CALLS:
| Class III Milk Futures: | 4 to 8 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Higher |
| Soybean Futures: | 1 to 3 Higher |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 5 to 8 Higher |
MILK:
Traders felt more positive about the market Tuesday due to the rebound of blocks cheese as well as the friendly Milk Production report. Added to that was an overall increase of the Global Dairy Trade auction price average. However, further support needs to develop in order to keep prices moving higher. Milk futures have little premium in contracts with traders seeing no need to keep extra premium in those contracts. The inability of underlying cash to establish a clear trend has left traders with an overall bearish attitude. The market will need to prove itself through increased demand and/or tightening milk supply. The August Milk Production report may be indicating that milk production may be slowing. The Cold Storage report Wednesday may show increasing demand.
CHEESE:
Blocks rebounded Tuesday with barrels trying to do the same. However, barrels slipped back after initially trading higher. The positive aspect was that it did not decline. Buyers may be more active again today as the strength Tuesday in blocks might result in sellers to hold back and wait for higher prices.
BUTTER:
Price has been in trouble over the past week retreating significantly from the high. The steady uptrend has been negated. Sellers remain aggressive looking at moving product rather than holding in the anticipation of stronger prices.
