OPENING CALLS:
| Class III Milk Futures: | Steady to 5 Higher |
| Class IV Milk Futures: | Steady to 5 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 12 to 14 Higher |
| Soybean Futures: | 16 to 20 Higher |
| Soybean Meal Futures: | $4 to $6 Higher |
| Wheat Futures: | 14 to 16 Higher |
MILK:
Milk futures reacted to the long-awaited gains of cheese prices. Yet, there was no follow-through higher trading activity overnight. This is not surprising as traders need to see proof that buyers are becoming more aggressive and willing to purchase cheese for expected future demand. Otherwise, the strength Monday and potential strength Tuesday might again be short-lived. That has been the pattern for a time and that pattern needs to be broken before traders will feel more confident of higher milk prices. There has been a strong and immediate correlation of milk to corn recently and with stronger corn prices, traders following that pattern will buy accordingly. Corn and milk prices do tend to follow a similar pattern, but not as immediate as it recently has been.
CHEESE:
The increase of cheese price Monday was a welcome sight, but prices remain below $2.00. High inventory and increased milk production does not provide much hope for higher prices. It will be up to demand to provide support by utilizing fresh cheese and aged cheese to keep inventory from increasing further.
BUTTER:
Price is expected to remain rangebound for a period of time as buyers and sellers remain comfortable doing business at the current price level. Production is being balanced with demand, keeping inventory lower than a year ago.
