OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Lower |
| Class IV Milk Futures: | 2 to 10 Lower |
| Butter Futures: | 1 to 3 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Higher |
| Soybean Futures: | 12 to 16 Higher |
| Soybean Meal Futures: | $5 to $10 Higher |
| Wheat Futures: | 5 to 8 Higher |
MILK:
There is just too much milk available for demand. Bottling demand has been steady to stronger, which should keep milk from oversupplying manufacturing, but that does not seem to make any difference at this point. Spot milk is tighter with prices at class or higher, but that does not make any difference. Some report demand for dairy is in line with last year, while some indicate it is a bit slower. This likely depends on the area and the product. The potential for demand to improve through the end of the year is questionable. Class III milk futures are lower overnight as selling pressure continued.
CHEESE:
There is little expectation for a bounce in cheese prices as sellers remain aggressive. If there is a bounce, it will only be short lived. Steady-to-higher cheese production will meet demand and may increase inventory through the end of the year.
BUTTER:
Price continues to fall as fast as it went up. Buyers continue to purchase but have pulled back purchasing only at significantly lower prices. Further weakness is expected Wednesday as sellers want to move supply before price fall yet further. However, this puts even more pressure on the market.
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