OPENING CALLS:
| Class III Milk Futures: | 10 to 15 Lower |
| Class IV Milk Futures: | 5 to 10 Lower |
| Butter Futures: | 1 to 2 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 5 Lower |
| Soybean Futures: | 5 to 8 Lower |
| Soybean Meal Futures: | $3 to $4 Lower |
| Wheat Futures: | 5 to 8 Lower |
MILK:
Milk futures took a beating on Tuesday and underlying cash prices plummeted. The tariffs going into effect added to an already bearish market. However, there have been rumors that President Trump has been in talks with Canada and Mexico, and there may be a potential rollback in the tariffs that have been put on both countries. If this takes place, the markets probably will find some support. This began circulating late on Tuesday, which may have been one reason milk futures began regaining the losses seen during much of the day. The markets are settled near where they are trading at 2 pm Central time, but trading continues until 4 pm. Milk futures regained some of the losses after settlement, indicating overnight prices could be higher. This happened as overnight Class III contracts were 11-17 cents higher. Milk futures may have been overdone to the downside and bounce was likely. It will be up to the underlying cash to provide market direction.
CHEESE:
The block cheese price plummeted again on Tuesday. The price fell 26.50 cents over the past three days. There had been 21 loads of blocks traded for the first two days this week as buyers were willing to purchase on the weakness. There were 15 unfilled bids remaining at the close of spot trading on Tuesday. This may indicate the market may be at or near support.
BUTTER:
There is no indication the butter price might be near support. However, the price decline on Tuesday could generate buyer interest as it is attractive to buy and store. The average price in the Global Dairy Trade auction increased by 2.7 percent from the previous event to $3.44 per pound. The U.S. butter price is very attractive to the export market.
