OPENING CALLS:
| Class III Milk Futures: | Steady to 5 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 5 to 7 Lower |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 10 to 14 Lower |
MILK:
There is little expectation for any significant change of trend. Milk supply remains sufficient for demand. More milk will be moving to the Southeast as milk is needed to supply school demand. This will reduce the availability of milk for manufacturing and reduce the discount for spot milk prices. However, that is not expected to tighten supply to the point where there will be a shortage. Underlying cash prices will need to see strength or milk futures will flounder. Even with some strength from underlying cash, traders will remain cautious over buying into the market aggressively anytime soon.
CHEESE:
Cheese prices have yet to find support. Any bounce in price has been short-lived keeping trader attitudes bearish. The bounce of cheese prices Friday did not indicate support had been reached. The market did the same thing the previous Friday only to fall to lower levels last week. This will leave traders cautious over spot trading activity Monday.
BUTTER:
Butter may retest support at $3.00 and may even fall below that level. Buyer interest may not be strong enough to keep prices above that level. There will be a limit to price potential, even though inventory is below a year ago and export demand is good. Buyers have been purchasing ahead and may move to a point where they have sufficient supply on hand for a time. It would not be surprising to see price move below $3.00 again.
