OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 4 to 10 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Lower |
| Soybean Futures: | 3 to 5 Lower |
| Soybean Meal Futures: | Mixecd |
| Wheat Futures: | 4 to 5 Lower |
MILK:
Class III milk futures have been under pressure and may remain that way for the near term. There is little reason for cheese buyers to be aggressive and higher milk production and more milk moving to the vat now that schools are closed will keep sufficient cheese supplies readily available to the market. The dryness in many areas has been good for forage harvesting. Hay quality is expected to be very good, resulting in strong milk production. Higher milk production will result in increased dairy product output. Consumer demand will need to remain strong to absorb the supply. Milk prices are not expected to increase in the near term.
CHEESE:
The upside price potential for cheese is limited under the current market fundamentals. Even though domestic demand is good and international demand is strong, there is sufficient supply to meet the demand.
BUTTER:
The butter price has increased nicely over the past week. Hopefully, demand is increasing to the point that buyers will be more aggressive in the spot market. Inventory is 9.0% below a year ago, even though butter output has been strong. This indicates demand is strong and is expected to continue.
