OPENING CALLS:
| Class III Milk Futures: | 4 to 8 Higher |
| Class IV Milk Futures: | 5 to 8 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 4 to 6 Higher |
| Soybean Futures: | 15 to 21 Higher |
| Soybean Meal Futures: | $6 to $8 Higher |
| Wheat Futures: | 10 to 14 Higher |
MILK:
The strength in milk futures carried through in the overnight session. This may change once short covering is finished and the day progresses. Underlying cash cheese prices have increased three consecutive days making some traders uneasy holding short positions. However, we have seen this before and have held out hope for higher prices only for them to be short-lived as higher prices bring sellers back into the market. Cheese and butter supply remains plentiful and milk production is above a year ago. This may leave upside price potential limited. However, seasonal buying could support prices at a higher level.
CHEESE:
Cheese prices increased, but milk futures held back on gains due to traders exercising caution over the recent gains. The market will need to prove itself before traders become more aggressive. Further gains may turn the attitude of traders. Buyers may become a bit more aggressive if cheese prices continue to move higher as more want to purchase for later demand rather than purchasing on only an as-needed basis.
BUTTER:
Price seems to be trending higher after moving above the range it had been in. Inventory is higher than a year ago, but demand later in the year will increase with buyers wanting to make sure they have sufficient supply on hand. The increasing price may bring more buyers off the sidelines resulting in more competition for supply at the lowest price possible. This may push prices higher as more buyers compete.
