OPENING CALLS:
| Class III Milk Futures: | 30 to 50 Higher |
| Class IV Milk Futures: | 10 to 20 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 6 to 12 Lower |
| Soybean Futures: | 5 to 10 Lower |
| Soybean Meal Futures: | $3 to $4 Higher |
| Wheat Futures: | 25 to 35 Lower |
MILK:
There has been no specific news over the weekend that triggered the strong gains seen right from the beginning of trading. This seems to be a carryover from the strong close on Friday despite the weakness of spot cheese prices. Those who recently sold contracts decided to get out after the strong close last week rather than wait to see what spot trading does. Futures are higher with bid and offers wide. It will be interesting to see trading activity when more traders get involved Monday morning. There was a report over the weekend that exports of soybean oil and soybean meal from Argentina are closing. This would increase demand for soybeans and meal from those countries that export product. This could drive the price of soybean meal substantially higher for the feed ration. However, this news has not impacted soybean meal to any great extent on the overnight trade.
CHEESE:
The weakness of cheese on Friday with blocks declining on offers with no buyers in the market would suggest further weakness is possible Monday. However, the needs and desires of buyers and sellers can change from day to day depending on orders or product that needs to be moved. Cheese production is ongoing with current supply adequate for demand.
BUTTER:
Price is trying to move higher but continues to remain nearly in the middle of the price range established in January. Current production is sufficient for demand with inventory increasing to some extent. With restaurant traffic slowing due to high fuel prices and inflation, price may remain rangebound for the foreseeable future. Choppy movement may continue.
