Tuesday Morning Dairy Market Update - The Week Begins With Milk Futures Under Pressure

OPENING CALLS:

Class III Milk Futures:	5 to 8 Lower
Class IV Milk Futures:	Mixed
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	1 to 2 Higher
Soybean Futures:	Mixed
Soybean Meal Futures:	$2 to $4 Lower
Wheat Futures:	11 to 13 Higher

MILK:

Class III futures continue to erode as further premium is taken out of the market. The block cheese price has been unable to find support. Buyers see no need to be aggressive as milk production remains strong, providing sufficient milk for bottling and manufacturing. The seasonal strength in cash prices is nowhere to be found. Buyes have no concern over supplies and are purchasing supplies as needed and have been able to increase ownership without needing to be aggressive. Class IV futures are faring better as the nonfat dry milk price continues to provide support. It does not appear there will be much change in the near-term.

CHEESE:

There is little expectation for cheese prices to move much. Solid support remains elusive as sellers continue to offer supply on the spot market. More milk is moving to bottling due to schools being open, but milk remains available to the vat. Steady cheese production is providing sufficient supplies to the market.

BUTTER:

The spot butter price bounced last week, but the overall price remains in a downtrend. The inability of the market to see a seasonal increase in price at this time of year does not bode well. Sellers continue to have sufficient supply, keeping buyers satisfied without having to chase the price higher.