OPENING CALLS:
| Class III Milk Futures: | 4 to 7 Lower |
| Class IV Milk Futures: | 4 to 8 Lower |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 1 to 2 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 2 to 3 Higher |
MILK:
There was unusual trading activity in the overnight markets. The July, August, and September Class III contracts traded, which is not unusual, but traded activity also took place in the January through June 2027 contracts, which is unusual. The same number of contracts traded in each 2027 contract, suggesting one trader was selling the strip, and one was buying. Unfortunately, prices were unchanged to 25 cents lower. Class IV futures had one contract traded in nearby June. This is unusual as the June contract has mostly been priced and generally moves very little until the class prices are announced. Being a cash-settled market, it is surprising that the price would trade 23 cents lower. This certainly does not look positive for the day.
CHEESE:
There is little anticipation of much strength in spot cheese anytime soon. Any price bounce has been short-lived, with the pattern expected to continue. Buyers are not building inventory, and sellers want to keep inventory from building.
BUTTER:
Manufacturers are selling what they are producing at whatever price they can get. Buyers see this and continue lowering bids, with no need to purchase aggressively. Current demand is being met with limited interest in building inventory for later demand. Price support remains elusive.
