OPENING CALLS:
| Class III Milk Futures: | 10 to 15 Higher |
| Class IV Milk Futures: | Steady to 5 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Lower |
| Soybean Futures: | 2 to 6 Lower |
| Soybean Meal Futures: | $3 to $4 Lower |
| Wheat Futures: | 1 to 3 Lower |
MILK:
Milk futures struggled to post gains Monday despite the strength of underlying cash in all categories except barrels. However, late strength continued in the overnight trade with contracts posing double-digit gains. This is a welcome sight as the market has been under substantial pressure for quite some time. There is still plenty of milk out there keeping plants full, but lower prices may stimulate consumer buying thereby increasing demand. Buyers of dairy products may become more active as they look forward to upcoming demand and current low prices. It makes sense to start buying to take advantage of these prices.
CHEESE:
Block cheese price increased Monday, but that was a small consolation compared to where price current is. However, it did move price back to the highest level it has been over the past month. This should be considered a victory. The market has a long way to go to where it was in spring. Further gains are expected Tuesday.
BUTTER:
The price increase Monday eliminated much of the loss of last week but was not enough to change the trend. There is strong demand from the food service industry and the export market, but slower demand from the retail market. There are reports that retailers are featuring butter and a loss leader to bring consumers into the stores, which could help move more product.
