OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | mixed |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | Mixed |
MILK:
Milk futures may see limited movement Wednesday with no specific direction. It is the last trading day of this week, with the dairy market closed Thursday and Friday. The spot markets will also be closed. The movement of spot prices will determine volatility and price movement. If the block cheese price shows further weakness, Class III futures may see a significant decline, as they have been holding up well so far this week, though blocks have declined. Futures may not be able to hold if further weakness is seen. Strong milk output and readily available dairy products leave the market in a bearish posture.
CHEESE:
The block/barrel price spread continues to widen. However, it seems the new pricing structure, not using barrels, has changed the impact of a wider spread and the trading activity on the spot market. The barrel market is not tight, but the business is being done in the country rather than on the spot market.
BUTTER:
The butter market does not indicate a bottom has been reached. Sellers continue to move butter to the market to keep inventory from building. Churns will slow the rest of the week, but that will not impact the market or supply. Churning will resume at full schedules next week as plants utilize the available cream supply.
