OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 8 to 12 Higher |
| Soybean Futures: | 12 to 16 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 18 to 22 Higher |
MILK:
The pressure continued on most futures contracts. There is hope underlying cash prices may be near a level at which buyers may be interested in purchasing more aggressively. However, with increasing inventory of dairy products with lower milk production, it looks as if supply will not be a concern the rest of this year. Milk production is holding well at a lower level with sufficient supply for both manufacturing and bottling. Sales of packaged fluid milk continue to decline year over year which is a trend that has been concerning for several years. The lack of demand for fluid milk has been made up with increasing demand for cheese and other dairy products. However, inflation seems to be slowing demand overall. Exports need to remain strong, or prices could see further pressure.
CHEESE:
The stability of block cheese yesterday did little to support milk futures. Traders have reacted positively in the recent past from a steady cheese price only to see price continue lower. The market will need to prove itself this time before traders get too excited.
BUTTER:
Price has been weakening reluctantly moving to the lowest level it has been since June 1. Supply is quite a bit lower than a year ago with demand remaining relatively strong. This should minimize the downside price potential. Cream remains available for current production schedules. Some difficulties of moving cream from an area of excess to an area of demand continue to challenge the market.
