OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 3 Higher |
| Soybean Futures: | 7 to 11 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 2 to 4 Higher |
MILK:
Class III milk futures closed mixed Tuesday with overnight trading showing a bias to the upside. Of course, that may change as the morning progresses and spot trading takes place. Buyers of cheese and butter have not had to be aggressive with purchasing product as sellers were the aggressive ones. Milk production is not tightening, leaving sufficient milk available for demand. It will be up to demand to tighten supply. Over time, cow numbers may decline due to low milk prices, but that may take a little longer than what had been expected. Lower corn price may have an impact on the rate of culling and milk output and the steady decline of corn might keep the upside price potential limited. Class IV futures could see more strength Wednesday.
CHEESE:
Sellers continue to bring cheese to the spot market even at lower prices. Buyers have no need to step up and be more aggressive. Orders are being met and aging programs are being replenished. Overall demand is good but remains variable.
BUTTER:
Price may be poised to break above the upside trading range as buyers look ahead to the potential for reduced butter output through the summer. If price moves above the price range it has been in, more buyers may step in and be more aggressive to purchase supply before price moves higher. This may provide further support under the market as buyers attempt to outbid each other.
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