OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Higher |
| Soybean Futures: | 5 to 7 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 7 to 9 Higher |
MILK:
Class III milk futures defied the weakness of underlying cash on Tuesday as traders liquidated short positions due to the cash trading activity and unfilled bids in barrels. Further strength may be seen today as the market adjusts. There is a possibility that buyers may step back into the market due to the substantial price decline over the past month. The price declines have not been caused by an overabundance of milk, but there is sufficient milk to meet demand. Milk production is expected to improve over the next few weeks and should keep up with a seasonal increase in demand.
CHEESE:
Cheese prices have fallen more than expected and it is unclear whether prices have found support. Buyers may view the current prices as a buying opportunity and may find less supply available once the aggressive selling stops. Cheese production has been steady with inventory below year-earlier levels. Demand is steady, but not improving as much as expected
BUTTER:
The butter price may have found a level where buyers and sellers might be comfortable. A sideways price range may develop as business is done. The price may remain in this range through the end of the year. Churning is actively providing sufficient supply for current demand and limiting the amount of inventory needed to supplement to meet demand.
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