OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 3 to 4 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 4 to 7 Lower |
MILK:
Pressure remains on milk futures with underlying cash prices mixed and choppy. There have been numerous times when overnight and morning trading activity points to higher prices, but those fade as spot trading takes place and little direction is seen. There has been little fundamental change in a while, which has kept the market from developing a strong trend. Without much direction from underlying cash, futures continue to slowly erode, dimming the outlook for milk prices. USDA will release the World Agricultural Supply and Demand report Wednesday, which provides their estimates for milk production, average milk prices, and average dairy product prices for the year. This report is not a market-mover. It provides estimates that change from month-to-month depending on how the market is moving.
CHEESE:
Cheese prices have shown a lot of divergence on a daily basis recently. It now seems the relationship between blocks and barrels has changed. The strength or weakness of one category does not necessarily influence the other. Buyers have no concern over supply as there is plenty of cheese available to the market. Orders need to be filled and once filled, price slips back.
BUTTER:
Price is not expected to move much with limited business taking place on the daily spot market. Buyers and sellers are taking care of most of their business in the country through regular channels as supply is sufficient for demand. Upside price potential is limited.
