OPENING CALLS:
| Class III Milk Futures: | 7 to 12 Higher |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 2 to 4 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 1 to 3 Higher |
MILK:
Class III milk futures moved in a sideways range last week as the market seems to be consolidating. Overnight trade was higher, possibly indicating cheese buyers may be more aggressive Monday. At least that may be the perception. There was no fundamental change overnight that would suggest any significant change in demand or supply. The Dairy Products report released Friday is not a market mover. It is possible the consolidation of futures last week could have made traders a bit nervous about holding sold positions much longer. However, covering those positions is usually best done during the day when there is more volume rather than overnight when volume is thinner. Nevertheless, futures are higher and possibly an indication of higher trade Monday.
CHEESE:
Prices may be at a level at which buyers may be more aggressive as they look ahead to upcoming demand. However, if sellers continue to offer loads to the market, they have no need to be aggressive as patience has paid off. Cheese output remains strong as milk receipts continue to increase and spot milk remains discounted.
BUTTER:
Butter is holding at the top of the trading range. Sellers may take advantage of the higher price to move more supply. However, a move above the range could cause sellers to hold back a bit and see just how aggressive buyers will be.
