OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 3 Higher |
| Soybean Futures: | 1 to 3 Higher |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 6 to 10 Higher |
MILK:
Milk futures will need confirmation of underlying cash strength in order to trigger trader buying interest. Traders may be cautious to buy into futures ahead of spot trading. Even though cheese prices remained steady Tuesday, it is uncertain whether that means prices may have found support. Trading activity is expected to be limited prior to spot trading. Sargento Foods based in Plymouth, Wisconsin, has purchased Baker Cheese Factory Inc. located in St Cloud, Wisconsin. Baker Cheese produces high quality mozzarella string cheese that is distributed in the entire United States. Baker Cheese employs 250 people, while Sargento Foods employs more than 2,000 people at its four Wisconsin locations. This acquisition will not displace any employees.
CHEESE:
Lower cheese prices should find some buying interest as buyers continue to look ahead to expected demand. Cheese production is steady with demand holding well. There is concern whether high prices will impact demand. The Global Dairy Trade auction Tuesday showed cheddar cheese price down 8.6%. In fact, all categories were lower as I reported in my closing comments Tuesday. Buyers may be backing away from higher prices.
BUTTER:
Butter continues to see overall weakness and the decline of nonfat dry milk Tuesday increases further concern over price strength. Another decline of price for both butter and nonfat dry milk could move price back to levels last seen in February for butter and January for nonfat dry milk.
