OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 2 to 4 Higher |
| Soybean Meal Futures: | Steady to $1 Higher |
| Wheat Futures: | 1 to 3 Higher |
MILK:
Milk futures have been on a roll higher as support has come from underlying cash as well a seeming change of attitude. Continued heavier culling and the decrease of production per cow may eventually tighten milk supply. However, upside has been limited and may be limited, depending on demand and milk prices. If milk prices improve, there will be a desire to increase milk production and add cows. If demand improves, there will be a need for more milk to meet that demand. Futures are not expected to move very much until spot trading as traders will want to see further confirmation of price support.
CHEESE:
Cheese prices have not be on a tear higher, but have been exhibiting some strength. Barrels have been in a steady uptrend while blocks have been pushing the upper end of the price range. Dry whey has been the category that has been on a strong uptrend providing support to Class III futures. Hopefully, this will continue.
BUTTER:
Butter seems to have nowhere to go except sideways. Retail demand is slowly improving while demand from the food service industry has been stable. Current production and inventory is sufficient for meeting demand. Manufacturers want to move product as quickly as possible rather than holding in anticipation of a higher price. This keeps the market choppy.
