OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 4 to 8 Lower |
| Soybean Futures: | 8 to 12 Higher |
| Soybean Meal Futures: | $1 to $3 Higher |
| Wheat Futures: | 20 to 30 Lower |
MILK:
Milk futures were lower Tuesday but did not decline as much as one would have expected. Futures came back from the lows into the close as there is optimism downside price potential is limited. There is strong demand for cattle at the sale barns, potentially indicating farmers are replacing those that are culled in the attempt to maintain milk production. Heifer supply is tight and most likely will remain that way for a time. Some plants are encouraging their patrons to increase milk production if they can and those that have production quotas are not penalizing them if milk production exceeds the quota. Milk production is slowly increasing from the lows this winter but remains below a year ago. Traders will be cautious until spot trading takes place.
CHEESE:
The action of spot cheese Tuesday would suggest further weakness Wednesday. However, the market has been far from following the usual. Buyers could step back in Wednesday looking to purchase cheese due to the decline Tuesday. Supply is sufficient for demand ,which may keep prices in a range for a time.
BUTTER:
Buyers and sellers seem comfortable at the current level. Some buyers are reported to have some supply already purchased for the third quarter. That is really thinking ahead and changes the market landscape as traders need to take this into consideration as they assess the market. Price is expected to remain choppy within a price range
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