OPENING CALLS:
| Class III Milk Futures: | 3 to 6 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 1 to 2 Higher |
MILK:
There is little to get excited about in the market. Heavy milk supply continues to impact milk prices. Bottlers and manufacturers have sufficient milk to keep plants operating on full schedules. Spot milk remains available at a steep discount to class. Culling is reportedly increasing but has yet to impact overall milk production. Milk futures have been in nearly a freefall over the past three months with limited price rebounds. However, each rebound resulted in continued lower prices. This has resulted in an extremely bearish attitude that will not be easily changed anytime soon. Cash price increases will be met with skepticism.
CHEESE:
Prices have not yet found a bottom. Buyers continue to hold back, requiring sellers to lower offers if they want to move product. Buyers see no need to be aggressive as supply remains plentiful. This pattern is expected to continue with the best we can hope for is price stability.
BUTTER:
Price is not expected to find enough strength to break out of the trading range as supply is balanced with demand. Inventory is running above a year ago, providing a level of comfort to buyers. Churning is active with demand steady.
