OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Steady to 5 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 10 to 15 Higher |
| Soybean Futures: | 18 to 25 Higher |
| Soybean Meal Futures: | $4 to $6 Higher |
| Wheat Futures: | 10 to 15 Higher |
MILK:
It was evident Monday that traders were not willing to buy into the market due to the minor strength of underlying cash. The recent price rally was longer than usual of what we had seen since the beginning of the year, but it still was short-lived and ran out of support quickly. Increases of underlying cash may have greater difficulty moving milk futures higher unless there is further fundamental support indicating a tighter supply. That is not the case at the present time and may not be for the foreseeable future. Class III futures have moved back to the levels they were about two weeks ago. Hopefully, the market may find support again at these levels.
CHEESE:
Blocks holding steady and barrels gaining a penny Monday should have provided some support to the market, but such was not the case. Traders have become disillusioned after the recent price uptrend came to an abrupt end last week. Buyers may not be as aggressive as supply remains available.
BUTTER:
Butter had a nice rebound Monday, but strong buyer interest is not expected to continue. The concern over the rise of cases from the COVID variant that grip the financial markets Monday may increase the caution of buyers of butter. Memories of last year remain vivid and a slowing of the economy or renewed drastic measures could reduce demand from the food service industry.
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