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: | 5 to 7 Lower |
| Soybean Meal Futures: | $4 to $5 Lower |
| Wheat Futures: | 1 to 2 Lower |
MILK:
Class III milk futures are kind of scraping along the bottom, not finding any solid support. Cash needs to trade consistently higher with dry whey regaining support before traders might get more excited about market potential. Milk production is steady to higher, allowing more milk to be available for bottling and manufacturing. Increasing components are improving cheese yield and cream supply. Farmers have culled most of what they needed to and are now comfortable with current animal numbers and will hold those and improve production. Most of the cows from farms that are exiting the dairy business are moving to other farms, keeping cow numbers somewhat steady.
CHEESE:
There may be limited upside price potential due to the current supply of cheese being readily available to the market. Inventory is above a year ago with the potential to increase further through the end of the year. With the big push of buying for the holidays behind, there may be limited aggressive buying interest.
BUTTER:
One must wonder just how low butter price will go. The aggressiveness of sellers has not slowed. Plants do not want to hold extra inventory. Buyers now have some inventory that had been purchased at much higher prices, leaving them less willing to purchase more until that is moved.
