OPENING CALLS:
| Class III Milk Futures: | 8 to 15 Lower |
| Class IV Milk Futures: | 5 to 10 Lower |
| Butter Futures: | 2 to 3 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Higher |
| Soybean Futures: | 8 to 10 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 6 to 8 Higher |
MILK:
Milk futures showed significant losses on Tuesday, with further losses in overnight trade. The buying frenzy may have dried up, triggering liquidation and hedging of the higher prices. Buyers in the spot market may step back from the market in anticipation that sellers will become more aggressive in their desire to take advantage of higher prices. This may pancake the market prices lower. The recent strong price rally did not have fundamental support and may be short-lived. Milk production is not slowing down. It will be up to demand to hold and improve prices, but that is a tall order at this time of year.
CHEESE:
The block cheese price declined on Tuesday, and it seems traders expect further weakness today based on overnight futures. The demand for cheese is good, but increased cheese output due to higher milk production will keep the market supplied.
BUTTER:
There is concern that there will be further weakness in the spot market due to the large volume of uncovered offers remaining at the close on spot trading on Tuesday. Overnight butter futures show further pressure as traders expect more aggressive selling in the spot market.
