OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Steady to 5 Lower |
| Butter Futures: | 1 to 2 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 5 to 10 Lower |
| Soybean Futures: | 10 to 15 Lower |
| Soybean Meal Futures: | $2 to $4 Lower |
| Wheat Futures: | 30 to 35 Lower |
MILK:
Milk futures took a little breather Friday and point to potential weakness Monday morning. However, that changes as more traders look at the market as the morning progresses. The strength of cheese prices Friday would indicate futures should move higher. However, there is concern cheese prices may be ready to retrace. Buyers may have sufficient supply for the time being and may step back from the market briefly. There has been no new news in the dairy industry over the weekend, leaving the market with the same fundamentals. Milk futures could find a level at which they will move sideways for a time.
CHEESE:
Buyers have been actively purchasing supplies, not only to fill orders but to increase ownership for expected later demand. The uncertainty of the market leaves buyers willing to purchase earlier and pay for storage rather than wait to purchase in anticipation of lower prices that may never materialize. The strength of spot prices on Friday would suggest further strength Monday, but it all depends on who is in the market wanting to do business.
BUTTER:
Price is expected to continue to chop around but slowly work higher. Supply is sufficient for demand, leaving little reason for buyers to become more aggressive. Buyers already have been purchasing ahead for third and fourth quarter potential demand which may leave them less aggressive as the year progresses.
