OPENING CALLS:
| Class III Milk Futures: | 4 to 8 Lower |
| Class IV Milk Futures: | 2 to 5 Lower |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 1 to 2 Lower |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 2 to 3 Lower |
MILK:
The fundamentals have not changed in the milk market, which may keep pressure on prices. There may be some areas where the milk supply is reported as tightening, but without strong demand, it will not support prices. There is little concern in the market over the milk supply keeping bottling and manufacturing satisfied. The potential tariff situation with Canada and Mexico will remain a cloud over the market. It has been delayed but could be implemented at any time. The discovery of a strain of bird flu in Nevada last week has traders uncertain whether that is bullish or bearish news. So far, bird flu has not provided much support to the market.
CHEESE:
Cheese prices are expected to continue to chop around. Buyers are not aggressive due to slower demand. Cheese inventory is building seasonally which will limit the need for buyers to be aggressive. Cheese yields are higher due to the record high level of protein in the market.
BUTTER:
One would think that the butter price is low enough to generate buying interest, but buyers are not concerned about the supply and have been able to purchase on price weakness. The abundant cream supply and active churning keep the current demand satisfied and the inventory growing.
