OPENING CALLS:
| Class III Milk Futures: | 5 to 15 Higher |
| Class IV Milk Futures: | Steady to 5 Higher |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 5 Higher |
| Soybean Futures: | 8 to 11 Higher |
| Soybean Meal Futures: | $3 to $4 Higher |
| Wheat Futures: | 4 to 6 Lower |
MILK:
It seems the market wants to move higher as traders showed buying interest again overnight. It is in the time of year buyers of cheese become more aggressive as they look ahead to demand later in the year. There has been a significant gain in underlying cash prices over the past two months, but that gain is expected to be slower moving forward as the market will balance higher prices with international prices and demand. Slowing milk production should provide some support as production is not expected to see any gains over the previous year over the next few months. Hot weather has impacted milk production to some extent, which will keep production lower than a year ago for a period. The potential for milk prices is uncertain but the low has been set for the year.
CHEESE:
Steady cheese prices Friday with only an unfilled bid for a load of barrels does not provide any indication as to price direction Monday. Block price fell below $2.00 last week but has a strong chance of moving back above that level again this week. Buyers may be a bit more aggressive now that less milk is moving to manufacturing.
BUTTER:
Price is expected to remain choppy. Trading activity on the daily spot market has increased significantly over the past few weeks. There is no lack of product available to the market, which keeps upside limited as there is no expectation of market tightness.
