OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 6 Lower |
| Soybean Futures: | 4 to 6 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 4 to 6 Lower |
MILK:
Milk futures made new contract lows again Tuesday with cash prices remaining under pressure as premium erodes out of the market. If underlying cash is unable to move to a higher price range or to trend higher, subsequent contracts will erode as they will need to match cash. With milk being dumped and spot milk prices at a significant discount to cash, there is little reason for buyers to be aggressive on the spot market. There is little interest from end users to step up to purchase ahead for later demand as they do not want to pay for storage any longer than necessary.
CHEESE:
Block cheese moved to a new low Tuesday with price moving back to the lowest level it has been since May 11, 2020. Price was rebounding at that time as the Farm to Families Food Box program was initiated. There is nothing in place now that will support the market to that magnitude. USDA had announced a buy of dairy products over time about two weeks ago that will be implemented in stages, but that has had no impact on the market.
BUTTER:
Price moved to the lowest level it has been since May 1. Lower price should increase the interest of buyers, but continued strong churning activity will keep supply readily available. Cream is ample even though ice cream production has increased. Inventory is higher than a year ago and exports have declined substantially.
