OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 3 to 5 Higher |
| Soybean Meal Futures: | $4 to $6 Lower |
| Wheat Futures: | 2 to 3 Higher |
MILK:
The strength on nearby Class III futures later last week may be challenged if cheese buyers do not remain aggressive. Later milk futures contracts will continue to lag as the market will need to prove itself. There may be a limit to how aggressive buyers of cheese will be. Milk production remains strong with spot milk at a substantial discount to class as extra milk is put out to the market to find a home. Milk production per cow continues to improve with cow numbers slowly increasing. Demand for dairy products has slowed, but still expected to remain good as consumers make dairy an important part of their diet.
CHEESE:
The buying of cheese later last week was the result of buyers wanting to take advantage of lower prices rather than any tightness of product. There is sufficient cheese available for demand with some beginning to move to inventory as demand is reportedly slowing a bit. Upside price potential may be limited.
BUTTER:
There is little anticipation of price moving much with buyers and sellers basically comfortable at the current level. However, increased churning due to plentiful cream supply should begin to build inventory. This may not result in a drop in price to any great extent, but it may limit upside potential. Traders will be cautious to begin the week.
