OPENING CALLS:
| Class III Milk Futures: | Steady to 10 Higher |
| Class IV Milk Futures: | 4 to 8 Lower |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 5 to 7 Higher |
| Soybean Futures: | 12 to 18 Higher |
| Soybean Meal Futures: | $3 to $5 Higher |
| Wheat Futures: | 20 to 25 Higher |
MILK:
Class III milk futures settled back into the close Monday after being very strong early in the day. Steady cheese prices have not been viewed as bearish but current fundamentals suggest prices may remain in a range for the time being. Cow numbers are increasing along with production per cow, yet cheese inventory is decreasing at the time of year when it is generally increasing. Settling Class IV futures with double-digit losses in numerous contracts Monday despite there being no trading activity is somewhat of a rarity. Milk production continues to increase seasonally. Trading activity may be light prior to spot trading as traders wait for cash to provide direction.
CHEESE:
Steady cheese prices Monday with no buyers and sellers showing up to do any business leaves traders guessing as to price direction. There is little anticipation of any long-term weakness of cheese prices. Demand is strong with some plants having difficulty producing enough supply to fill orders. Some of this has to do with the lack of employees hindering full production schedules. Price dips are viewed as a buying opportunity to increase the ownership of product.
BUTTER:
The continued weakness of butter is a reflection of the slowing of retail sales. Food service demand is steady. Buyers have been purchasing ahead of time to hedge against the potential for higher prices later in the year. Price weakness has allowed buyers to continue to increase ownership without having to chase the market higher. Price is expected to be steady to weaker.
