OPENING CALLS:
| Class III Milk Futures: | 4 to 8 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 3 Higher |
| Soybean Futures: | 2 to 4 Lower |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 10 to 14 Higher |
MILK:
The pressure on Class III milk futures Tuesday came in response to lower cheese prices. The decline of nearby futures was generally in line with the decline of underlying cash, giving the impression traders may not think the market will rebound quickly. Prices may have moved too high, too fast with buyers of cheese now stepping back for a period. Milk production continues to provide sufficient supply for bottling and manufacturing. Plants are operating on full schedules as allowed by current employee staffing. Some plants have more production capacity but are limited to what can be accomplished due to labor. Milk futures may see selling pressure ahead of spot trading in anticipation of further weakness due to no buyers showing interest Tuesday, even at lower cheese prices.
CHEESE:
Buyers of fresh cheese may have been satisfied for the time being. Purchasing will continue out in the country, but they may not need to come to the spot market in the near term. Price may retrace as buyers may hold back, waiting for lower prices before stepping back in again.
BUTTER:
Price has been in a range since late last year and is expected to remain in a range for the foreseeable future. Supply and demand seem to be balanced with inventory growing. Price will not remain in the range indefinitely, but buyers and sellers are comfortable at the present time.
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