OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Higher |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Higher |
| Soybean Futures: | 10 to 15 Higher |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 10 to 14 Higher |
MILK:
Milk futures have posted some nice gains so far this week with support from underlying cash. The attitude of traders may be turning, but they remain cautious. The reaction of futures to the increases of spot cheese prices was slow to develop after spot trading but did finally result in higher futures as the day progressed. There is no way of telling just how aggressive and how long buyers will be willing to be more aggressive with cheese purchases. Concern over the continued level of demand will be a cloud over the market. Stronger milk production will need to be absorbed through strong demand. Milk futures are expected to see further gains Wednesday prior to spot trading.
CHEESE:
Cheese prices are poised to move back above $2.00 again. This would be positive to the market, even though prices would still be low compared to what we have seen so far this year. Buyers of cheese may be willing to take advantage of lower prices to purchase more product due to demand possibly being better than anticipated.
BUTTER:
The market seems to be balanced with buyers and sellers comfortable doing business at the current level. Export demand is holding well. Retail and food service demand has slowed but continues to hold at a good level. Price is expected to remain rangebound.
