OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 5 to 8 Lower |
| Soybean Futures: | 7 to 12 Lower |
| Soybean Meal Futures: | $4 to $8 Higher |
| Wheat Futures: | 14 to 18 Lower |
MILK:
There was limited trading activity in Class III futures overnight with prices lower. This stands to reason due to stronger prices Monday despite lower spot prices. Buyers of cheese will need to feel that demand will improve through the end of the year, or they will continue to purchase on an as-needed basis, leaving the market in a sideways pattern. However, a sideways pattern may indicate downside price risk may be limited. Milk futures may be under some pressure as traders will wait for spot trading to provide further direction. Weakness of underlying cash may generate buyer interest again today. This would keep the market choppy.
CHEESE:
Demand needs to improve, or buyers will remain unaggressive. More milk will move to bottling over the coming weeks, reducing the amount available to manufacturing. This may reduce supply if demand improves. However, with some cheese already purchased ahead, buyers may be less aggressive, waiting for sellers to offer product rather than chasing after it.
BUTTER:
Supply and demand are balanced, leaving price within a range. There is no concern over the lack of supply now or through the end of the year. Churning is active but at a slower pace than usual for this time, as the lack of employees and truck issues continue to impact production and distribution. The positive aspect is that it keeps inventory from growing and price higher.
