OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 2 to 4 Higher |
| Soybean Meal Futures: | $1 to $3 Higher |
| Wheat Futures: | 2 to 3 Higher |
MILK:
There was little to provide price direction for traders Monday. The same is likely true Tuesday. Market fundamentals are rather benign, leaving the market floating. The strength of block cheese on Monday did little to generate any volatility. Price strength has been limited and there may be no exception to that any time soon. Cattle continue to move around from farms going out of business to ones that are expanding. Some milk plants are not allowing expansions while others want to keep a steady supply of milk and are willing to move quota from farm to farm or have increased capacity and can accept more milk. It seems the low milk prices would reduce this desire, but farms continue to move forward. This will keep the milk supply available for needs.
CHEESE:
The jump in block cheese price Monday was a bit of a surprise but was viewed with skepticism by the trade. The strength is not likely to hold if the pattern over the past months remains intact. Cheese demand is about as expected for this time of year with cheddar varieties being more in demand.
BUTTER:
Price is expected to remain in a sideways range. The question is whether the range will be where the price currently is or whether the price will decline and trade at a level like a year ago. Inventory is larger than a year ago, which may limit upside potential, but it is not a concern for the industry right now.
