OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 14 to 18 Lower |
| Soybean Futures: | 15 to 20 Lower |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | 10 to 14 Lower |
MILK:
Strength in Class III futures was positive Monday in the face of weakening cheese prices. The market was overdone to the downside with traders not willing to press prices lower. Short-covering resulted in higher prices. Strength will need to be supported by higher spot prices or the gains will be short-lived. Milk production is being impacted by hot weather, but it is uncertain just how much impact it will have. So far, milk supply is available for demand. Some reports are that loads are short for needs, requiring purchases of milk from the spot market. This has reduced the discount spot milk has been carrying. Fluid milk demand has slowed, leaving more available for manufacturing. The Global Dairy Trade auction will take place Tuesday.
CHEESE:
Cheese prices have not yet found a bottom. Buyers have not been aggressive as they assess current supply with demand potential. Buyers already have some purchased ahead, which leaves them less aggressive as they look at the potential of slowing demand. Demand for fresh cheese is the key to price potential. There already is sufficient supply of aged cheese on hand.
BUTTER:
Price looks like it will be retesting the upper end of the range as it moves close to $3.00 again. Buyers and sellers are comfortable with current prices with quite of bit of activity taking place during spot trading. Demand has slowed a little but continues to remain strong.
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