OPENING CALLS:
| Class III Milk Futures: | 5 to 15 Lower |
| Class IV Milk Futures: | 4 to 8 Lower |
| Butter Futures: | 1 to 2 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 1 Higher |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | Steady to $1 Lower |
| Wheat Futures: | 3 to 4 Higher |
MILK:
Milk futures remain bearish with lower prices overnight and higher-than-usual trading activity. The pressure on Wednesday may be difficult to overcome. Traders may be bracing for another bearish milk production report on Friday. However, it may already be factored in once the report is released. Milk production continues to remain strong and is expected to remain that way through the end of the year and likely longer.
CHEESE:
The inability of the block cheese price to increase on Wednesday was a disappointment for traders. They quickly sold futures in the anticipation of further weakness. It further solidified the fact that there is limited upside potential for cheese prices.
BUTTER:
It certainly seems that butter will retest the low of last week and may even move lower. Retail demand has improved, but strong butter production keeps plants wanting to move supply to the market rather than building inventory.
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