OPENING CALLS:
| Class III Milk Futures: | 5 to 15 Higher |
| Class IV Milk Futures: | Steady to 10 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Lower |
| Soybean Futures: | 8 to 12 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 3 to 5 Higher |
MILK:
It has been positive to see the recent strength in milk futures, but many are again waiting for the axe to fall. There is doubt the strength of underlying cash will continue as has been the pattern for quite some time. However, at some point that pattern will be broken, and this could be the time of year for that as market participants look ahead to demand during the second half of the year. Continued strong milk production does keep sufficient supply available to the market, leaving little reason for the industry to be concerned over any tightness. Class III futures should trade moderately higher prior to spot trading but gains and activity may be limited.
CHEESE:
The more aggressive buying Monday in the spot market and blocks finally moving higher, could generate further buying interest Tuesday. It will be up to sellers are to how far they will be willing to let buyers bid higher before they offer supply more aggressively again. The supply is there, it will be up to demand to dictate how high prices could go.
BUTTER:
The current trend in butter is not expected to change much in the near-term. Production has slowed, but inventory remains high, which will be available to meet seasonally increasing demand. Price has yet to find solid support.
