OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Higher |
| Class IV Milk Futures: | Steady to 10 Lower |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 3 Higher |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $3 to $5 Higher |
| Wheat Futures: | 6 to 10 Higher |
MILK:
It seems as if there is anticipation by traders that steady to stronger cheese prices may unfold during spot trading. Class III futures traded higher overnight as there has likely been some short-covering as traders want to liquidate just in case. More milk will be moving to the Southeast, tightening milk supply available to manufacturing in those areas that divert milk. This should reduce cheese production and increase spot milk prices. The concern is whether that will be enough to improve milk prices. Seasonal buying in preparation for demand later in the year should be surfacing. However, that may take longer to develop as buyers wait for further indication of the strength of demand as consumers grapple with higher food prices.
CHEESE:
Cheese prices have a long way to go to turn the attitude of the market away from the current bearish mode. There is concern the strength of cheese seen Tuesday may again be short-lived. The market will need to prove itself before traders will be comfortable buying into the market for the long term.
BUTTER:
Price may test the lows of the range over the coming days. The substantial amount of butter that has been traded for a number of weeks may be near to satisfying the needs of buyers for a period of time. This could move price below the $2.90 level that has been support. However, any price decline is expected to be limited.
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