OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Steady to 10 Lower |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 5 Higher |
| Soybean Futures: | 4 to 8 Higher |
| Soybean Meal Futures: | $1 to $3 Higher |
| Wheat Futures: | Mixed |
MILK:
Milk futures pushed higher Monday, supported by an increase in barrel cheese price. Some Class III futures are not far from reaching $19.00. Strength of underlying cash could accomplish that task in a few days. Buyers have been aggressive in the cash market with traders following suit in the futures market. One surprising aspect is that the market continues to build on the large futures price increases that were the result of last week's acreage report. If milk prices keep up with increasing feed prices, then milk production will not decline as some expect. Trading only took place in June overnight with price unchanged. Activity is expected light prior to spot trading.
CHEESE:
Prices have yet to break out of the sideways pattern they have been in for quite some time. However, demand remains strong and buyers seem to be focused on increasing ownership earlier rather than later. There is sufficient supply of cheese available to the market, but the concern for tighter supply as the year progresses is spurring buying interest.
BUTTER:
Price was resilient Monday, coming back from the low during spot trading. It was interesting that the price swing was only from two loads traded. Light activity is taking place in the spot market due to much of the overall business being accomplished through the open market. Price may be near a level at which buyers may become resistant.
