OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 14 to 20 Higher |
| Soybean Futures: | 20 to 25 Higher |
| Soybean Meal Futures: | $4 to $6 Higher |
| Wheat Futures: | 10 to 15 Higher |
MILK:
Traders will be cautious to begin the week. Milk futures rebounded somewhat at the end of last week but may hold steady until spot trading takes place. Traders are not interested in buying aggressively into the market as the recent pattern has revealed that a bounce in underlying cash prices has been short-lived. The market will need to prove itself before traders' current bearish attitudes will change. Cow numbers have been remaining stable with milk production continuing to run below the level of a year ago. However, milk supply remains sufficient for both bottling and manufacturing demand with discounts remaining for spot milk.
CHEESE:
Cheese prices are expected to chop around for a period as buyers and sellers take care of business during a period of uncertain demand. Buyers have some supplies already on hand for later demand and are purchasing more only at lower prices. Price bounces have been short-lived as follow through buying has not been taking place. This will change over time, but demand will need to increase during the second half of the year.
BUTTER:
The balance of supply and demand has been holding price near the level of $3.00. This is expected to continue unless demand slows further than the level of production. Cream is available allowing butter production to continue at the levels desired by plants. So far, export sales and demand have kept inventory from catching up to the level of a year ago.
