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: | 7 to 10 Lower |
| Soybean Meal Futures: | $3 to $4 Lower |
| Wheat Futures: | Mixed |
MILK:
There has not been much change in market fundamentals indicating either a bullish or bearish direction. However, there seems to be support building in the market in anticipation of higher prices. There is growing concern over the impact of bird flu on the milk supply. Bird flu has been spreading and is difficult to contain unless strict precautionary measures are maintained and then it is not guaranteed. This coupled with a tight heifer supply has increased the potential for a reduced milk supply as the year progresses. It is premature for this at present, but it may influence the buying of dairy products and price strength earlier than usual. The psychology of the market may support the market.
CHEESE:
There seems to be limited downside price potential in the market. Buyers may be more interested in purchasing to protect against further price gains leaving the downside limited. The whole year is ahead and there could be tighter supplies if production remains at the current level and demand improves.
BUTTER:
The butter price does not seem to be as supported as cheese at present. However, that may change as the demand for butter is expected to outpace the demand for cheese. The limiting factor for price is the heavy cream supply and active churning at a time when demand is slower. Retail demand has been better than the food service industry.
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