OPENING CALLS:
| Class III Milk Futures: | 4 to 6 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 4 to 5 Higher |
| Soybean Futures: | 4 to 6 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 15 to 19 Higher |
MILK:
There is no fundamental news to move the market significantly. Milk production is strong and demand is good. So far, demand is keeping up with production, but the result has been steady prices at lower levels. The anticipation has been that seasonal buying would improve, resulting in higher prices, but so far that has not been the case. There has been no need for buyers to be aggressive as they see sufficient supplies and the potential for it to remain that way for a while. The USDA will release the World Agricultural Supply and Demand report Wednesday morning. The report will show USDA's estimate for milk production, milk prices, and dairy product prices. The report will not be a market-mover, but may indicate price potential.
CHEESE:
Steady prices on Tuesday and no interest from buyers or sellers did not indicate direction. Prices could move either way Wednesday depending on who needs to accomplish business. Buyers remain content to purchase supplies as needed and to build inventory when possible.
BUTTER:
Butter supplies are plentiful with sellers readily offering it on the spot market. Churning remains active, providing sufficient supply to demand. Buyers see no reason to be aggressive. They have been purchasing to fill immediate orders and to increase ownership for later demand.
