OPENING CALLS:
| Class III Milk Futures: | 5 to 15 Higher |
| Class IV Milk Futures: | 4 to 10 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 7 to 9 Higher |
| Soybean Futures: | 8 to 10 Higher |
| Soybean Meal Futures: | $3 to $5 Higher |
| Wheat Futures: | 6 to 8 Higher |
MILK:
There seems to be some change in the attitude of traders as futures are more apt to show greater gains on underlying strength in the spot market. Time of year is one consideration as buying generally becomes more aggressive in underlying cash as they look ahead to demand later in the year. USDA will release the June Milk Production report on Thursday which could set further direction for the market depending on the level of milk production and cow numbers for the month. Milk futures likely will continue to chop around as sufficient milk supply will keep upside price potential limited to some extent. Overall milk production remains above year earlier levels.
CHEESE:
The gain in block cheese price was far short of the loss on Friday but nearby Class III milk futures gained back the losses and then some in anticipation of further gains in cheese prices. Sellers may hold back for a brief period but will continue to move cheese to the market in an effort to minimize inventory build. Buyers may not be overly aggressive as supply is available.
BUTTER:
Price is slowly working higher as buyers look ahead to upcoming demand. Butter is not in a tight supply, but the price is reasonable, making it attractive to purchase now rather than later when demand improves and price is higher. Upside price potential may be limited as restaurant traffic has declined and high food prices have caused consumers to pull back on certain food purchases. Price is expected to remain supported.
