OPENING CALLS:
| Class III Milk Futures: | 8 to 12 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Lower |
| Soybean Futures: | 3 to 5 Lower |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | 1 to 2 Lower |
MILK:
Class III milk futures have taken a beating over the past two weeks as extreme volatility took place in the spot cheese market. It would not be surprising to see a substantial rebound of the block cheese price Wednesday, but traders may be reluctant to follow it higher to its full extent. Farmers indicated milk production is doing well with milk components being very good in those areas that have not been high with the bird flu. Dairy Market News had earlier reported that both butterfat and protein levels are at record highs. This has improved cheese yield and allowed for abundant cream supplies. The current milk supply is sufficient for the demand leaving bottlers and manufacturers satisfied and not concerned about a shortage.
CHEESE:
The activity in the spot cheese market has been light, but volatile. The price swings of block cheese have been unprecedented. The price swings wildly on nearly a daily basis as buyers want to buy during the break, only to find limited selling interest and end up bidding up the price. The reverse is true when the price rebounds as sellers want to take advantage of the higher price.
BUTTER:
The butter price seems comfortable at the current price level and will be supported but have limited upside in the near term. Churning is active with plentiful cream supplies. Demand is steady for retail and lighter for the food service industry.
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