OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 5 Lower |
| Soybean Futures: | 8 to 11 Lower |
| Soybean Meal Futures: | Steady to $1 Lower |
| Wheat Futures: | 4 to 5 Lower |
MILK:
The strength of milk futures is not expected to continue indefinitely. The time of year would lend itself to a slowing of buying interest in underlying cash due to many orders having been filled and supply on hand for the rest of the year. Now it will be up to demand to determine the level of orders that may come in above what is anticipated. Milk production is steady to slowly improving, which should keep the market supplied with milk for bottling and manufacturing. Grain prices have weakened recently on the futures market, keeping feed prices in check. However, not much may have changed in the cash market as high fuel price and other costs have kept delivered feed prices high.
CHEESE:
Cheese made a nice run higher last week and there had been no indication buyers have been satisfied. This may result in further strength Monday. However, prices may have increased to a level at which buyers may resist and stop bidding aggressively. If this happens, sellers may turn to be more aggressive again. Current supply is sufficient, and inventory is large.
BUTTER:
The extreme volatility of the market slowed during the second half of last week. Buyers and sellers may have found a level at which they are comfortable to do business for the time being. Churning has increased, which will keep sufficient supply available for demand with no shortage expected through the end of the year. Price is expected to be choppy this week.
