OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Higher |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 2 to 4 Higher |
MILK:
Milk futures appear to be heading back up to the highs again. Even though there has been some weakness in cash cheese, the attitude is that it will be short lived. There is sufficient milk available for processing, but milk supply is not expected to improve anytime soon. Farms seem to be in a holding pattern. Increasing costs of production will keep expansions limited. Cow numbers may continue to decline as farmers try to do what they can to reduce costs while at the same time be efficient. Feed supply, debt load, labor, etc. will all need to be factored in before adding cows or expanding. Growing demand for dairy and steady milk production is creating the bullish attitude in the market. Overnight trading activity was non-existent and unusual in a volatile market environment.
CHEESE:
There is uncertainty in the cheese market currently, but that uncertainty is not impacting the outlook for higher prices. Traders feel there is limited downside risk. Demand for cheese is strong with buyers in the spot market purchasing ahead for expected future demand. They would rather purchase now and pay storage costs rather than wait for price weakness that my never come.
BUTTER:
There is no slowing butter down. Price takes a breather at times, but then continues higher. Price has held or increased over the past 16 consecutive trading days, gaining 69 cents. Technically, the market is ready for a price correction, but cash prices do not trade technically. Higher price still has not found buyer resistance which should keep it strong.
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