OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Higher |
| Class IV Milk Futures: | Steady to 5 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 3 to 5 Lower |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 8 to 12 Higher |
MILK:
Milk futures were mixed following the pattern of underlying cash. Traders remain somewhat bearish to Class III prices and neutral to Class IV prices. The trend of increasing milk production and cow numbers may leave a limited upside price potential for the time being. Sufficient milk supply will keep both bottlers and manufacturers satisfied. Demand will need to improve to keep pace or supplies will end the year higher than a year ago. There is much concern over demand as inflation and interest rates continue to rise. Consumers continue to face higher food prices at grocery stores. The strong U.S. dollar may also have some influence of the level of exports moving forward. Demand over the next few months will be critical for prices moving into next year.
CHEESE:
Spot cheese prices found no buyer interest Tuesday, but sellers were also not very aggressive. Price may continue to chop around for a period of time, establishing a sideways trend. Buyers of cheese have been able to purchase what they need without difficulty with much being done through regular channels. This limits the amount they need to purchase on the daily spot market.
BUTTER:
The high has likely been established in butter for the year with buyers and sellers comfortable at the current price. Business is being done with buyers concerned over supply through the end of the year. The fact that 23 loads of butter were traded during spot trading Tuesday indicates demand remains strong and buyers are not only filling orders but also increasing ownership for fill-in demand as the year progresses.
