OPENING CALLS:
| Class III Milk Futures: | Steady to 8 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 5 Higher |
| Soybean Futures: | 20 to 25 Higher |
| Soybean Meal Futures: | $5 to $7 Higher |
| Wheat Futures: | 5 to 7 Higher |
MILK:
Milk futures have had an incredible move higher overreaching underlying cash. Futures paused yesterday as traders waited for cash to catch up. Spot trading activity would suggest prices could increase again today but traders will be cautious until the spot market sets direction. Milk production this week is termed as steady in many parts of the country but overall, it is increasing seasonally. Bottling for school accounts will slow next week with some milk diverted to manufacturing. This will not have much impact on the market as milk plants should have no difficulty processing extra milk. The Consumer Price Index at 7.7 percent increased the hopes that inflation has peaked and will be on its way down.
CHEESE:
There is concern that the leapfrog effect of buying in spot cheese may leave a price void under the market. Once current orders are filled, buyers may not be as aggressive again for a time depending on ongoing demand and buyer interest. However, there is no indication prices have reached resistance.
BUTTER:
Price had been able to rebound nicely from the low of last week. Price strength may be running out of steam, but the market should remain higher. There is a potential for price to fall back to where it had been, but lower price may increase the interest of buyers providing ongoing support to the market. Churning has been improving, but not enough to change market dynamics.
