OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 2 to 5 Lower |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 4 to 5 Lower |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | Mixed |
MILK:
There is not much to be said about the dairy markets. Milk futures are having difficulty finding strength due to the continued weakness of the underlying cash. The milk supply is sufficient for demand. Cow numbers continue to increase. However, there have recently been reports of increasing dairy cattle slaughter taking place. Milk prices are low enough that further income needs to be generated than from the beef on dairy calves being sold. Culling may increase if milk prices cannot find support through the end of the year. Dairy exports remain strong but are not enough to tighten supply and increase prices.
CHEESE:
It is too early to tell whether cheese prices have found a bottom. Buyers have not been aggressive despite the lower prices. Demand is considered steady but has not been improving as much as anticipated. Buyers have been able to purchase cheese without having to chase the market higher.
BUTTER:
The weakness of butter has moved the price spread between it and cheese to 14.25 cents. The spread has not been this narrow in a few years. The price has not been able to find a bottom. The unfilled bids remaining at the close of spot trading on Tuesday were at lower prices, with those bids likely to be lowered today as buyers expect further weakness
