OPENING CALLS:
| Class III Milk Futures: | 2 to 5 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 5 Higher |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 12 to 14 Higher |
MILK:
Trading activity was unusually high in the overnight market. Activity took place in all Class III contracts through the end of the year. It is surprising to see the trading activity in the April contract, as Tuesday is the last day to trade April futures and options. There is no need to offset positions by the end of the contract period due to it being a cash-settled market. Minor trading activity was seen in Class IV futures, making it a second day of unusual overnight activity. Most contracts traded at a higher price, indicating further optimism Tuesday.
CHEESE:
Cheese prices have maintained support with prices nearing the upper end of the price range. It may be difficult for the price to exceed the previous high under the current market. Cheese production remains strong and increasing due to high milk receipts at the plant level. Demand has been steady, limiting inventory build.
BUTTER:
Butter has been unable to find support, with any price increase being short-lived. This has kept the market in a downtrend. The butter supply is below a year ago, but that is meaningless as long as manufacturers continue to offer loads on the spot market. Even though inventory is below a year ago, there is sufficient supply for demand, with buyers unconcerned.
