OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Lower |
| Soybean Futures: | 5 to 7 Lower |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 4 to 6 Lower |
MILK:
Traders were not anxious to either cover short positions or to establish long positions yesterday. They reacted to higher cheese prices but with light trading volume. There is skepticism over the upside potential for cheese prices as sellers remain active. Milk output continues to increase with more available on the spot market and the approval to dump milk in Federal Order 1 yesterday showing the current state of the industry. A plentiful milk supply keeps all areas of bottling and manufacturing satisfied. Culling has not yet increased to any great extent as farms are pushing milk production to offset lower milk prices. In time, lower milk prices will increase culling.
CHEESE:
The ability of barrel cheese price to purchase 12 loads and yet remain higher while 5 loads were offered at the closing price without the sellers lowering the offer to move supply was interesting. Maybe sellers will not remain as aggressive with supply possibly being more in balance. Further price gain may be difficult to unfold.
BUTTER:
There is not much to be said about butter as supply and demand are balanced with buyers and sellers comfortable in the current price range. Churning remains strong keeping butter available to the market. Price is expected to remain range bound.
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