OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 5 Higher |
| Soybean Futures: | 10 to 14 Higher |
| Soybean Meal Futures: | $3 to $4 Higher |
| Wheat Futures: | 1 to 3 Higher |
MILK:
Class III milk futures continue to creep higher, outpacing underlying cash. However, the anticipation is for higher prices and traders are confident in keeping premium in the market. Futures are creeping closer to $19.00, improving the price outlook immensely. Butter price continues to remain above block cheese price, which should bring Class III and Class IV prices closer together. The difference is that dry whey price has been much stronger than nonfat dry milk price. This continues to keep a wider gap between III and IV prices. However, current prices should reduce or eliminate negative Producer Price Differentials. More strength is expected in futures Wednesday, but traders will remain cautious.
CHEESE:
If the recent pattern holds, barrels could move higher Wednesday while blocks may remain steady. Cheese prices seem to be stair-stepping higher on limited trading activity. Product seems to be available in the country, but buyers continue to show up during spot trading and remain willing to pay higher prices to purchase what is available.
BUTTER:
Price may have reached a plateau as increasing demand from the food service industry may have been satisfied for the time being. Retail demand has settled down now that the holiday is over and retail featuring has slowed. Production remains strong as cream is readily available. Price could remain choppy.
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