OPENING CALLS:
| Class III Milk Futures: | 5 to 15 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 6 to 9 Lower |
| Soybean Meal Futures: | $3 to $5 lower |
| Wheat Futures: | 10 to 12 Lower |
MILK:
The strength of Class III futures continued in overnight trade but with light activity. Some traders might be holding onto their sold positions, anticipating the strength will not continue. The aggressive buyers that came to purchase cheese on the spot market went home satisfied, leaving no unfilled bids remaining. The concern will be whether there will be other buyers willing to carry the baton at higher prices when supply is plentiful. Increased cheese production is keeping sufficient fresh cheese available with most business being done through regular channels in the country. Overall milk production is strong and continues to slowly increase. Feed is of very good quality in most cases, improving milk production per cow. Class III and Class IV futures are running closely in line with each other.
CHEESE:
The increase of cheese prices Monday was a surprise as supplies of cheese are readily available. It seemed buyers were in a pinch and needed to obtain some cheese quickly. Price was bid up very aggressively, indicating the urgency of the need. This aggressive bidding likely caused sellers to hold back for higher prices, which may have magnified the strength of the market. Buyers may not be as aggressive at current levels, which may result in a void under the market.
BUTTER:
Price strength may be limited as butter supply is increasing. However, demand remains good and price at a level which is attractive for both buyers and sellers. Nonfat dry milk is the anchor on Class IV futures with price moving to the lowest level since Aug. 24, 2021.
