OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 6 to 12 Lower |
| Soybean Futures: | 4 to 8 Lower |
| Soybean Meal Futures: | $2 to $4 Lower |
| Wheat Futures: | 6 to 12 Lower |
MILK:
Traders have had the weekend to ponder the strength or weakness of the markets. Overnight trade indicates they did not come to any solid conclusion of price direction. The decline of futures during the second half of last week struck a blow to those who believed milk prices were going to continue to increase, following corn. That still could be a large influence as there is a lot of growing season yet to take place. However, milk prices will be subject to the strength of underlying cash. Strong milk production leaves sufficient supply for both bottling and manufacturing. This is not going to change anytime soon. The next event that might impact milk production is hot weather and that likely may not happen over the next few weeks.
CHEESE:
Block cheese tried to break out of its sideways trading range but fell back into it during the last half of last week. Supply and demand seem to be balanced, keeping both buyers and sellers satisfied. The drop of cheese prices on Friday and then buyers stepping back in at lower prices does bode well for the market possibly indicating there is a strong level of support.
BUTTER:
Butter price is holding well. It has been trending lower overall, but not falling apart. Price is now back above cheese again, increasing the price outlook for Class IV milk. Nonfat dry milk is a bit of a concern as the decline last week has been significant. But price was due for a correction after the substantial price movement it has had since mid-March.
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