OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 5 to 8 Lower |
| Butter Futures: | 1 to 2 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 1 to 2 Higher |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 5 to 7 Higher |
MILK:
Class III milk futures closed mixed while Class IV futures suffered losses. Traders are not expecting any significant movement in underlying cash, which may keep futures choppy. Fundamentally, the market has nothing to be excited about. Milk production remains higher than a year ago and is expected to remain that way as cow numbers increase and feed prices remain low. The positive development is that spot milk prices are increasing as the milk supplies tighten from the levels they have been for quite some time. This may slow cheese production and may result in buyers being more aggressive.
CHEESE:
The barrel price has been holding above blocks, but this has no direct impact on milk prices anymore as barrels are not used in the calculation of the class prices. Block cheese, butter and dry whey are the drivers of the Class III price. The supply of cheese is sufficient for demand, keeping prices choppy.
BUTTER:
The butter price took a step back but is expected to find buyer interest on the weakness. Churning remains active but is slowing at some plants as the cream supply is declining. There is sufficient for production needs, but cream multiple prices are increasing.
