OPENING CALLS:
| Class III Milk Futures: | 5 to 15 Lower |
| Class IV Milk Futures: | Steady to 10 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 6 Lower |
| Soybean Futures: | 10 to 20 Higher |
| Soybean Meal Futures: | $5 to $7 Higher |
| Wheat Futures: | 50 to 75 Lower |
MILK:
There is no indication the market may have reached a plateau. Underlying cash strength keeps futures moving higher. Milk is available for bottling and manufacturing, but many processors would like more. Most have indicated to their patrons that they are free to increase milk production with current facilities but not expand unless the plant allows them to expand. Many plants that have production quotas in place are not penalizing patrons for producing over their quota. However, many producers may not push for much higher production due to high feed prices increasing the cost to produce that extra milk. USDA will release the World Agricultural Supply and Demand report Wednesday, which will provide their estimates of milk production, milk prices and product prices for the year.
CHEESE:
It is uncertain at what level demand may be affected in light of rising consumer prices for everything. We know prices will not continue to rise indefinitely, but they may be further upside if feed and fuel prices continue to surge higher. Demand has been good both domestically and worldwide. Overall exports have remained strong. Prices may be more stable Wednesday.
BUTTER:
Bulk butter supply is termed as tight with overall butter supply sufficient for demand. There has been some indication restaurant demand has slowed, but likely more along seasonal lines than because of price. Price is trying to regain the high set in January.
.jpg)
